Indian state-owned company Oil India has submitted a feasibility report to the government in connection with the construction of a pipeline from Bihar to Assam to address the energy needs of the state.
The proposed gas pipeline extends from Barauni in Bihar to Numaligarh in Assam, covering around 750km.
Oil India chairman and managing director Utpal Bora was quoted by PTI as saying: “Last week, we submitted the feasibility report to the Petroleum Ministry regarding laying of pipelines from Barauni to Numaligarh.
“We have addressed various aspects of gas transportation and its economic viability in the report.”
The public sector company already operates two pipelines transporting crude and oil between Barauni and Naharkatia in Assam.
Bora added that the state government of Assam wants it to take up the project, as the company already obtained a Rights of Use (RoU) agreement with land owners and two pipelines are operational.
Oil India is exploring the possibility of form a joint venture with Gas Authority of India (GAIL) in connection with the project.
The company recommended viability gap funding assistance from the government to approximately INR400m ($6.21m).
Additionally, the report delved on issues such as establishing compressed natural gas (CNG) fuel stations and providing liquefied petroleum gas (LPG) to each household through the pipeline, pointing out the gap in the demand and supply in the state.
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