Fight between GAIL & GSPL over transport of ONGC Gas

State-owned  gas utility GAIL (India) Ltd and Gujarat State Petronet Ltd (GSPL) have broken into a fight for transportation of natural gas from the KG basin gas fields of Oil and Natural Gas Corporation (ONGC). GAIL intends to lay a 13.6 km line from Odalarevu in Andhra Pradesh to connect to its existing pipeline grid in the region. GAIL pipeline would cost Rs 85.36 crore.

Whereas, GSPL India Transco Ltd (GITL) wants to lay a 50-km line to transport the gas to its proposed Mallavaram-Bhopal- Bhilwara-Vijaipur cross country pipeline(MBBVPL). The Rs 8,086 crore MBBVPL project has not yet taken off because of lack of gas source. GITL pipeline would cost Rs 250 crore.

A GAIL official said its KG basin pipeline is already in existing pipeline which is not the case with GITL's MBBVPL.

Whereas, a GITL official said that MBBVPL is the least cost option to transport gas from ONGC KG basin to central, western and northern regions of India owing to its tariff being most competitive.

Both the companies have sought the permission from Petroleum and Natural Gas Regulatory Board (PNGRB) for laying the pipelines. PNGRB is yet to give its authorization to either of the two.