The Hindu : Front Page : Piped natural gas on tap soon

Online edition of India's National Newspaper
Tuesday, Mar 06, 2007
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Piped natural gas on tap soon

R.K. Radhakrishnan and N. Ravi Kumar

There is also a proposal to supply natural gas for automobiles

NEW INITIATIVE: Chief Secretary L.K. Tripathy (foreground) with other officials, at the Secretariat on Monday. — Photo: M. Vedhan

CHENNAI: Piped natural gas on tap could become a reality for thousands of households in major cities across Tamil Nadu with the State Government planning to facilitate the project of Reliance Industries Limited.

"We are confident that all clearances will be given to the company [Reliance] by the Centre in the next few weeks," Chief Secretary L.K. Tripathy said on Monday. Once the clearances were accorded, the project will be on stream in 18 months.

His announcement, at a press conference, comes nearly three months after Reliance Industries chairman Mukesh D. Ambani met Chief Minister M. Karunanidhi and briefed him about the company's plan to supply piped natural gas in Tamil Nadu. He had also highlighted the cost-effectiveness of piped natural gas — nearly one third less compared to that of Liquefied Petroleum Gas.

The project involves drawing natural gas from the Krishna Godavari Basin in Andhra Pradesh and moving it in pipelines to major cities in Tamil Nadu, beginning with Chennai. Mr. Tripathy said the pipeline network would connect at least 25 cities and towns up to Tuticorin. The company had obtained approval for laying the pipeline up to the Andhra Pradesh border.

Industries Secretary Shaktikanta Das said that the government had discussions with the Oil and Natural Gas Corporation and Gujarat State Petroleum Corporation too, which besides Reliance, were stakeholders in gas fields at the KG basin.

There also was a proposal to create facilities in Chennai, as part of the project, for supplying the environment-friendly natural gas to automobiles and other user groups. Sources in Reliance Industries said on obtaining the no-objection certificate from the State Government, the company would seek approval from the Centre.

Commercially competitive

Reliance Industries is, however, not the only company planning a piped natural gas project in Tamil Nadu. Indian Oil Corporation is also working on a project on similar project.

A senior official of the national oil company told The Hindu that lot of planning had gone into the project, which would be "commercially competitive."

While declining to give details of the gas source, he declared: "We will not lag behind [Reliance Industries]." Sources in the State Government said it was also keen on roping in IOC.

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