GAIL to mop up Rs 800cr via KG-D6 gas transportation

State-run gas monopoly GAIL India today said it will earn Rs 800 crore in additional revenues from transporting Reliance Industries' (RIL) Krishna-Godavari basin field gas to consumers next fiscal.

"Transportation of 40 million standard cubic meter per day of gas will give us an additional revenue of Rs 800 crore per annum in transportation charges," GAIL Chairman and Managing Director UD Choubey told reporters here.

RIL is to be begin gas output from its eastern offshore KG-D6 field by first week of March with initial volumes raging between 10-20 mmscmd.

The company will ramp up to 40 mmscmd in the second half of 2009.

"If we transport the entire 80 mmscmd peak output expected from KG-D6 field, our transportation revenues will double," he said, adding GAIL currently earns about Rs 1,600 crore from transporting gas through its 7,000 km pipeline networks.

"Connectivity (between GAIL's pipeline network and landfall point of RIL's gas) has already been achieved," he said.

Choubey said if GAIL is given the marketing of RIL gas, the company will earn Rs 250 crore additional revenues.