Rajahmundry, Aug 31: The Gas Authority of India (GAIL) is gearing up to create infrastructure facilities to market 13.5 million cubic meter of gas per day by 2002-2003, to various customers, mostly private power projects, in East Godavary, West Godavary and Krishna districts of Andhra Pradesh.Talking to newspersons here on Thursday, director (projects), GAIL SP Rao said a pipeline to supply additional five lakh cubic meters of gas per day to the Kakinada-based Nagarjuna Fertilisers and Chemicals (NFCL) was completed and gas was being supplied from July last.
Another pipeline to supply additional six lakh cubic meters of gas per day to Vijjeswaram power plant located on the banks of river Godavary in West Godavary was almost completed and gas would be supplied in a fortnight's time.
He said laying of the 63 km long pipline from Narsapuram to Vijjeswaram was completed ahead of schedule. But a defect in the pipeline, which was yet to be corrected, had delayed its commissioning.
After the commissioning of Vijjeswaram pipeline, the total supply of gas in these districts would go up to six million cubic meters per day from the current 4.8 million cubic meters.
In the next phase, commencing from January 2001, additional 150 km long pipeline, costing over Rs 100 crore would be laid from Tatipaka to S.Yanam, GVK Power, spectrum for additional supply of gas.
Another 180 km long pipeline from Tatipaka to Kondapalli to supply 11 lakh cubic meters of gas per day to Lanco Power project would be commenced from January 2001. It was expected to be completed within 18 months.
He said the southern regional office of GAIL would be located here for which lands had already been acquired.
He announced that the administrative price control in the sale of natural gas would come to an end by 2002, from which market forces would determine the gas price.
Mr Rao said Krishna-Godavary project of Oil and Natural Gas Corporation (ONGC) would be able to supply the required gas to GAIL to meet the target for its new consumers.
He announced that a proposal to supply one lakh cubic meters of gas per day to house holders through pipelines in Rajahmundry, Amalapuram and Kakinada, had been cleared by the ministry concerned. Under this, GAIL would lay a pipeline near the town and other infrastructure would be taken care of by a joint venture partner.
He said GAIL would sign a contract with Andhra Pradesh Industrial Infrastructure Corporation (APIIC) within three months. The other details of the project, which would cost about Rs 150 crore, were yet be worked out.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.