Reliance Industries to Invest $4.5 Billion in Natural Gas Pipeline Network

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Researched by Industrial Info Resources India (Delhi, India)--India's natural gas sector is evolving and becoming increasingly competitive due to enhanced investments made by various players and the emergence of competitive markets. Reliance Industries Limited (RIL) has so far made 25 oil and gas discoveries in the Krishna-Godavari (KG) Basin, of which two, D1 and D3, have been put into production at a cost of $8.84 billion. Besides the D1 and D3 gas fields and the MA oil discovery, nine other gas finds were previously declared commercial; now, four more may be added to the list.

Gas production from RIL's D1 and D3 blocks in the KG Basin has been ramped up to 60 million standard cubic feet per day (mmscmd). Reliance is expected to reach peak capacity of 80 mmscmd from a total of 31 wells by the second quarter of 2012.

Reliance Gas Transportation Infrastructure (RGTIL), a wholly owned subsidiary of RIL, has sought permission to lay an intricate network of pipelines for the transportation and distribution of natural gas from the KG Basin fields to India's southern and eastern regions. The proposal is part of the Mukesh Ambani plan to utilize gas from India's largest offshore natural gas discovery. As a part of this plan, RGTIL proposes to lay natural gas pipeline projects stretching from Kakinada in Andhra Pradesh to Haldia in West Bengal (1,100 kilometers, 20 mmscmd); Kakinada to Chennai (600 kilometers, 20 mmscmd); Chennai to Bangalore to Mangalore (660 kilometers, 10 mmscmd); and Chennai to Tuticorin (670 kilometers, 10 mmscmd).

These major grassroot natural gas pipeline projects are expected to be completed by the third quarter of 2013, with a total investment value of approximately $4.5 billion.

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