GSPC seeks to transport RIL's gas from KG basin to Jamnagar

Mumbai, May 20: The state-owned Gujarat State Petroleum Corporation (GSPC) has opened talks with Reliance Industries Ltd (RIL) to transport the Krishna-Godavari (KG) basin gas from the east coast to west coast states under a swap arrangement, said a reliable industry source.

The swap arrangement proposed by GSPC envisages RIL to accommodate natural gas it has discovered in the KG basin through RILs proposed pipeline, connecting Kakinada in Andhra Pradesh on the east coast with Uran in Maharashtra on the west coast of the country, sources added.

In effect, GSPC has offered RIL to transport its gas from Uran in Maharashtra to its Jamnagar-based refinery located in the north west of Gujarat.

Both GSPC and RIL discovered gas in adjoining blocks and are expected to have landfall point just next to each other to facilitate transport of gas. RIL has landfall point at Gadimoga village, about 30 km south of Kakinada.

This move is expected to reduce the cost of transportation of gas for the distance of over 1,400 km, from the east coast KG basin to the west coast where there is large concentration of utility and petrochemical capacity of the country.

UNI