GAIL invests Rs 844 cr in pipeline expansion

New Delhi, Jun 23 (PTI) State-owned gas utility GAIL (India) Ltd on Monday said it will invest Rs 844 crore in expanding Dahej-Uran-Dabhol-Panvel natural gas pipeline capacity to meet increased energy demand.

The DUPL-DPPL network, the name Dahej-Uran-Dabhol-Panvel natural gas pipeline network is referred to, currently has 19.9 million standard cubic metres per day capacity. This is being expanded to 22.5 mmscmd, GAIL said in a stock exchange filing.

GAIL said the pipeline capacity will be added in three years.

"Investment required (is) Rs 844 crore," it said. "It was approved by the Board of Directors of the company in its meeting held today i.e. June 23".

GAIL also said it has pushed back the completion scheme of its 1,702 km Mumbai-Nagpur-Jharsuguda pipeline project from June 30, 2025 to September 30, 2025.

This would require additional investment of Rs 411.12 crore, it said. "The project cost is anticipated to be increased by Rs 411.12 crore and therefore, the revised project cost for MNJPL is Rs 8,255.37 crore, which is 5.24 per cent higher than the originally approved project cost of Rs 7,844.25 crore."

The 693-km Mumbai-Nagpur section of the pipeline is mechanically complete except for a 1 km stretch. The 692-km Nagpur-Jharsuguda pipeline is 98 per cent mechanically completed.

"The pipeline laying work is affected due to delay in obtaining forest permission, NBWL clearance and Ministry of Road Transport and Highways permission along NH-44 in Maharashtra," it said.

The 317-km Nagpur-Jabalpur pipeline is 97 per cent mechanically completed. "The pipeline laying work is affected due to delay in acquisition of right of use (RoU), permanent land parcels for valve stations and local resistance."

"The entire Mumbai-Nagpur-Jharsuguda pipeline is expected to be completed progressively by September 2025," GAIL said.

GAIL said it has also revised the schedule for the 744-km Srikakulam-Angul pipeline project from June 2025 to December 2025.

"Entire mainline of 422 km has been mechanically completed and commissioning has been started. Out of 322 km (spur lines), lowering of 252 km has been completed. Further, work on the pipeline was affected due to delay in obtaining forest permission and till date, working permission of 45 km has been received out of total required permission of 56 km," it added.