Lok Sabha Question No. 484 (UNSTARRED), answered on 2017-02-06
Subject: Laying of Natural Gas Pipelines
Ministry: PETROLEUM AND NATURAL GAS
Asked by: BAIJAYANT "JAY" PANDA

## LOK SABHA

## UNSTARRED QUESTION NO. 484

## TO BE ANSWERED ON 6.2.2017

## LAYING OF NATURAL GAS PIPELINE

## 484.    SHRI BAIJAYANT JAY PANDA:

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

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(a) whether the Petroleum and Natural Gas Regulatory Board has granted permission, to GAIL for laying and expanding natural gas pipeline along the Surat-Paradeep route and if so, the details thereof along with the progress made in this regard, so far;

(b)  the  status  of  the  expression  of  interest  made  by  H-Energy  Private  Limited    for  laying  and operating natural gas pipeline on the Contai-Paradeep-Dattapulia route;

(c)  whether  the  Government  has  noticed  that  lack  of  availability  of  natural  gas  pipeline infrastructure in  Odisha  is  affecting the  ability to establish CNG stations as  a measure against vehicular pollution and if so, the details thereof; and

(d) the concrete steps taken by the Government to ensure the availability of natural gas, pipeline infrastructure and establishment of CNG stations in Odisha in a time-bound manner?

## ANSWER

पेट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज् य मंत्ररी (स् विंत्र प्राार

( श्ररी धमेन्द र प्रधान

## MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a):  Yes  Madam, Petroleum and Natural Gas Regulatory Board (PNGRB) authorized GAIL to develop the Surat-Paradeep natural gas pipeline of 2112 kms on 25.4.2012.  The capacity in the natural  gas  pipeline  is  74.81  Million  Standard  Cubic  Meters  per  Day  (MMSCMD)  and  the estimated project is Rs. 10,280 Cr.   The details of progress made so far is Annexed.

(b): On scrutiny of Expression of Interest (EOI) submitted by H-Energy Private Limited, PNGRB observed that though the bidder had secured highest composite score as per bidding parameters but the tariff bid quoted by the entity was leading to negative cash flows during the prescribed project life of 25 years.  Accordingly, the bidding process has been annulled by PNGRB.

(c)  &  (d):      Yes.    In  year  2007,  Petroleum  &  Natural  Gas  Regulatory  Board  (PNGRB)  was established  under  the  PNGRB  Act,  2006.  Under  the  Act,  PNGRB  grants  authorization  to  the entities  for  developing  a  City  Gas  Distribution  (CGD)  network  in  the  specified  Geographical Area (GA) of the country through a bidding process. PNGRB has envisaged a phased roll out plan for development of CGD networks in several GAs in various part of the country including Odisha.  Keeping  in  view  the  availability  of  Coal  Bed  Methane  (CBM)  in  Odisha  and development  of  Jagdishpur-Haldia/Bokaro-Dhamra    Pipeline  (JHBDPL)  with  40%  grant  i,e. Rs.5176 crore by Government of India  and Surat Paradip natural gas pipeline passing through Odisha, PNGRB has identified 16 Geographical Areas (GAs) for development of City or local Gas Distribution (CGD) Networks in the State of Odisha.

## ANNEXURE REFERRED IN REPLY TO PART (a) OF LOK SABHA UNSTARRED QUESTION NO. 484 ANSWERED ON 6.02.2017

## Status of progress made so far development of Surat-Paradip Natural Gas Pipeline

-  Immediately upon receiving GoA from PNGRB, liaising Office established at Nagpur. GAIL Team met statutory authorities and State Administrations, requesting support for smooth execution of Project.
-  Applications submitted for long lead Permissions like Forest, Railways etc.
-  Heads  on  Agreement  signed  with  various  Customers  for  54  MMSCMD  (Major customers:  Torrent  Power,  Orissa  Power  Corp.,    Kribhco  -  Hazira,  FCI-Talcher, MahaGenco & Neco - Nagpur, SAIL-Bhilai, IOCL-Paradip, GAIL Gas etc.).
-  Agreement signed with ONGC on 21.07.2012 for gas supplies.
-  Expression of Interest published on 19.11.2012 & 28.04.2014 in various News Papers for capacity booking.
-  Long-Term RLNG sourced from Cheniere / Gazprom (availability from 2017).
-  Detailed Route Survey carried out for Paradip / Dhamra - Angul - Deori section with spurlines to Bhubaneswar, Talcher, Balaghat (~ 1000 Km).

## In spite of GAIL's initial engagement, project had to be kept on hold due to:

-  Lack of firm tie-ups with anchor load customers & no demand take off.
-  Consideration of Coal gasification instead of Natural gas for FCIL-Talcher.
-  Delay  in  development  of  ONGC-Mahanadi  Gas  Filed  &  delay  in  execution  of Mallavaram-Bhilwara Pipeline i.e. no domestic gas source.
-  No LNG Regasification Terminals in East Coast & non-availability of capacity at Shell - Hazira LNG Terminal.

GAIL has  been  advised  to  implement  Angul  -  Dhamra  /  Paradip  as  part  of  Jagdishpur  Haldia  Pipeline  Project  for  which  GAIL  has  submitted  a  revised  proposal  to  PNGRB  for revising completion schedule upto Jan'20.

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