Gujarat State Petronet gets approval from PNGR Board to lay New Pipeline
This project is expected to be completed in three years and has an approved capital expenditure of Rs 2,100 crore.
Gujarat State Petronet gets approval from PNGR Board to lay New Pipeline
New Delhi: Government-backed Gujarat State Petronet Ltd has received approval from the Petroleum and Natural Gas Regulatory Board to lay the Anjar-Palanpur pipeline. With the new pipeline's 12 mmscmd capacity, GSPL's high-pressure gas grid in Gujarat will have a 45 mmscmd total capacity.
This project is expected to be completed in three years and has an approved capital expenditure of Rs 2,100 crore. This respective pipeline is supposed to connect the Mundra LNG terminal to GSPL’s Mehsana-Bhatinda pipeline, which is important for transporting gas in the region.
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Constraints on pipeline capacity cause the Mundra terminal to be underused now. Although the immediate tariff impact is small, the board indicated that GSPL is a desirable investment at current costs given the long-term prospective for tariff reversal and capacity increase.
Specifically, GSPL had claimed in its December 2023 HP price submission a total future investment of Rs 3,400 crore, but the PNGRB only granted Rs 1,800 crore. As a result, April 2024's tariff dropped 47% from Rs 34 per million British thermal units to Rs 18 per mmbtu.
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