GSPL led group wins interstate pipeline bid

A consortium led by Gujarat State Petronet Ltd (GSPL), a subsidiary of Gujarat State Petroleum Corp. Ltd, has won a bid for laying down a 1,585km pipeline from Mallavaram to Bhilwara via Vijaipur. GSPL holds a 52% stake in the winning entity, which is yet to be named, while Indian Oil Corp. Ltd holds 26%. Hindustan Petroleum Corp. Ltd and Bharat Petroleum Corp. Ltd hold 11% each.

Laying the entire pipeline would cost at least `6,300 crore at `4 crore per kilometer. This pipeline project, the first interstate project for GSPL, will eventually be integrated with other pipelines such as the Hazira Vijaipur Jagdishpur (HVJ) pipeline, and the proposed Mehsana Bhatinda pipeline (1,670km) and Surat Paradip pipeline (1,680km) projects.

The consortium has also submitted expressions of interest for both the proposed interstate projects. Recently, Canada's Niko Resources Ltd, which owns 15 % in Reliance Industries Ltd (RIL) operated D4 block in the east coast of India, said the block has a potential of 100 trillion cu. ft reserves.