GAIL CMD to call on Naidu

Pipeline network safety in Andhra on agenda

Andhra Pradesh chief minister, N Chandrababu Naidu, will be holding a meeting on July 15 with BC Tripathi, chairman and managing director of Gas Authority of India Limited (GAIL), in Hyderabad.

During the meeting, Naidu is expected to raise safety issues relating to GAIL's pipeline network in the state in the aftermath of a fire and blast last month in Nagaram village of East Godavari district that claimed the lives of 19 individuals.

Soon after the incident, GAIL has constituted an internal inquiry committee headed by its executive director (operations and maintenance). It has also decided to engage an international consultant to conduct an intensive third-party audit of its pipeline safety systems and other hydrocarbon installations pan-India. The company has also nominated a nodal officer for coordinating the relief and rehabilitation measures and closely work with local authorities, government and villagers.

Informed sources in the AP government said the meeting would also raise GAIL's participation for setting up of a floating, storage and re-gasification (FSRU)-based liquefied natural gas terminal in Kakinada. GAIL is part of the project in JV with AP Gas Infrastructure Corporation.

Last week, AP Cabinet had decided to induct multinational oil major Shell with a 26 per cent equity in the proposed special purpose vehicle (SPV) for the project.

The floating storage and regasification unit is expected to be commissioned by the end of 2015.