GAIL decision to revive Dabhol with Hazira gas leaves State fuming  

Ambitious to see a gas based economy replace the existing thermal power one in Gujarat, the State Government is squirming at a Gas Authority of India Limited (GAIL) decision to resuscitate troubled Dabhol power project by transferring gas from Dahej-Hazira terminals.

The proposal to complete a dedicated pipeline between Hazira/Dahej and Dabhol for the transfer by this year end, has set the State Government worrying, as this is likely to bottle up already constrained gas supply for the burgeoning gas demand in Gujarat.

With industry the big consumer of gas in the State, and the government-backed statewide gas grid expanding at a fast pace, any drop in the existing availability might directly impact industrial growth. A concerned State Government has written to the Centre seeking explanation on the project, also asking all Gujarat MPs to get an early response in the Parliament.

Sources in the Energy department and GSPC inform that any diversion of gas from Hazira/Dahej is going to impact Gujarat the most as in the existing scenario, of the total available supply, 40 per cent comes to Gujarat.

?The gas that lands in Gujarat at these terminals is shared by states along the HVJ pipeline. With no other state having the kind of facilities to industrially exploit gas, Gujarat?s share in it is up to 40 per cent. Understandably, any diversion would affect us the most,? says a senior officer.

The decision by GAIL, a partner in Dabhol, has the Government of India blessing as the Centre desperately plans to salvage the stillborn project. As per GOI revival plan, the fuel costs for Dabhol are to be made manageable by mixing lower long term contracted price by spot LNG buys. The GOI argument is that just because the landfall for the gas is in Gujarat, the state is not entitled to a majority share.

State owned Gujarat State Petroleum Corporation Limited (GSPC) has already launched a study on how much gas the State gets as compared to its demand, and the kind of impact the Dabhol diversion would have on overall availability.

?Our study apart we need to clarify from the Central Government about its plans as this could adversely impact gas security of customers in Gujarat,? says a senior energy department official.

The gas is to be transported from the terminals of Petronet LNG and Royal Dutch Shell at Dahej (Bharuch). The 1166 km long GAIL pipeline has been hitting roadblocks in Maharashtra though, with farmers in some areas opposed to its passing through their arable fields.

Source: The Indian Express, New Delhi, February 13, 2007
                          Petronet LNG Stock Quotes                                       
©Petronet LNG Limited                                                            Home | Contact Us | Disclaimer | Quick Links | Mail Servers: Primary / Secondary |