Pipeline project gets moving, finally


Pipeline project gets moving, finally

The Gas Authority of India Limited (GAIL) pipeline project which had been stalled in the state for almost two decades has gained steam. The work on the project has made tremendous progress in the past six months following completion of land acquisition along 109km spread across seven districts.

Minister for industries A C Moideen told TOI that the government would be extending all support for speedy implementation of the project. “The project would provide a boost for the industrial sector in the state.Many industrial units which now run on loss can become profitable once they switch over to LNG,” Moitheen said. “We have taken genuine demands by the people into consideration and have enhanced the compensation for taking over land,” he said.

According to GAIL officials, the land acquisition has been completed in several sensitive areas where the work had to be stopped due to protests against land acquisition.

“Of the total 437km on the Kochi -Mangaluru stretch, 370 acres have been taken over so far. In the Kochi-Thrissur stretch pipes have been laid along more than 45km. We could advance the work along 25km in the past six months.The progress in laying the pipe during the past four years till June, 2016, was just 20km,” said said Tony Mathew, chief manager, constructions, GAIL The GAIL officials said that work on the pipeline can be completed next year. Once the project is completed, the state would get a revenue of around Rs 1,000 crore as tax every year.Petronet LNG is supplying natural gas to factories and industrial units. “Now, we have started measures to provide LNG connection to KMML, Chavara. It is estimated that that the company can save up to Rs 2 crore on fuel a year,” an official with the Petronet LNG said.

 “Now, the LNG will be transported to Chavara by road. If the industrial demand is high, a pipeline to southern side can be constructed,” he said. In Kochi, GAIL has already given LNG connections to almost a dozen industries.
Earlier, there was a proposal to construct a pipeline to southern side. “We had even conducted a survey for fixing the alignment of the pipeline. Our main motive was to supply LNG to NTPC plant at Kayamkulam.
 Cost of electricity will go up a bit if the fuel used for power generation is changed to LNG from the conventional coal.Then, the state government informed that it was not ready to buy electricity at higher rate.In the absence of a major consumer, we had to wind up the project. The situation would change in the future as the government is advising use of pollution-free fuel,” said an official who was associated with the project. There were also plans to extend the alignment to Coimbatore. Read More…

 

READ  Natural gas not to drive ONGC's profitability in near term: Moody's
Credit By : Timesofindia.indiatimes.com

Leave a Reply

Your email address will not be published.