News: RIL sketches grid for gas to south India

(TT 03/12/2006) Chennai - Reliance Industries is planning an ambitious ‘southern corridor’ of gas pipelines through Andhra Pradesh, Tamil Nadu and Kerala, to commercially exploit its huge gas reserves in the Krishna-Godavari basin.

The company’s chairman Mukesh Ambani, who held discussions with Tamil Nadu chief minister M. Karunanidhi at the latter’s Gopalapuram residence here this evening, said “some of the huge quantities of natural gas” in Andhra Pradesh “is with Reliance”. He, however, did not specify the quantity.

After the 30-minute meeting, at which the Union communications and information technology minister Dayanidhi Maran was also present, Ambani said the benefits of this natural gas find could be directly delivered to thousands of households in Tamil Nadu also.

“So, after Andhra Pradesh, our focus will be Tamil Nadu,” he said, adding that Reliance hoped to deliver piped gas directly to households across major cities and towns in the state in the next two to three years. “This gas supply would be 25 per cent to 30 per cent cheaper than LPG,” he said.

“Therefore, we can bring down (gas) prices in south India,” he added.

Hinting at extending Reliance’s retail network in Tamil Nadu, Ambani said they were also looking at creating distribution logistics to support the farmers of the state in marketing their agriculture products.

Karunanidhi welcomed both the projects and assured the state government’s full support.

The capital outlay for these two projects will be divulged at the appropriate time, Ambani added.

One estimate, however, has put his proposed investments in the state at around Rs 15,000 crore.

Maran said the proposed CNG pipeline project in particular was crucial as the pipeline would criss-cross Tamil Nadu en route to Kerala.

Apart from ensuring direct piped gas supply to households in Tamil Nadu, the CNG, like in Delhi, could also be used in vehicles, Maran added.