RGTIL Acquires License for Shahdol-Phulpur Natural Gas Pipeline

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Researched by Industrial Info Resources India (Delhi, India)--Reliance Gas Transportation Infrastructure Corporation Limited (RGTIL), the Gas transmission arm of Reliance Industries Limited (BSE:500325) (Mumbai), has received Grant of Authorization from Petroleum & Natural Gas Regulatory Board (PNGRB) (New Delhi) for laying Natural gas Pipeline from Shahdol in Madhya Pradesh to Phulpur near Allahabad city in Uttar Pradesh. RGTIL had submitted the Expression of Interest to lay Natural Gas Pipeline in July last year.

Mukesh Ambani-led RGTIL has planned to lay the pipeline from Sohagpur (East) and Sohagpur (West) Coal Bed Methane (CBM) Blocks in Shahdol to hook up point of Gas Authority of India Limited's (GAIL) (BSE:532155) (New Delhi) Hazira-Vijaipur-Jagdishpur (HVJ) gas pipeline in Phulpur.

The 300-kilometer (km) long gas pipeline will route through Shahdol-Jaysingnagar-Beohari-Gurh-Phulpur, which will have a capacity to transfer 4.375 Million Metric Standard Cubic Meter per Day (MMSCMD) of natural gas. Pipeline will have an initial transmission capacity of 3.5 MMSCMD. The pipeline will also have an additional capacity of 0.875 MMSCMD which will be available for any third party user under open access system. Pipeline will meet the existing shortfall of gas faced by customers in HVJ pipeline catchment area.

Reliance Industries is expecting CBM gas production from Sohagpur (East) and Sohagpur (West) Coal Bed Methane (CBM) blocks in 2015 for which they are planning to lay the proposed pipeline. RGTIL has been allowed a maximum period of 36 months from the date of issue of authorization letter for commissioning of the natural gas pipeline project.

Reliance Gas Transportation Infrastructure Limited (RGTIL) is engaged in Natural Gas transmission and distribution business. It has an operational East West Pipeline of 1,400 km having capacity to transport 80 Million Standard Cubic Feet Per Day (MMSCMD) of Natural Gas. Notably, last year RGTIL lost its permits for laying four natural gas pipelines, over inordinate delays in construction of the 2,175-km lines.

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