GSPC in talks with Gazprom, STG for exploration, J&K pipeline

Gujarat State Petroleum Corporation is in tie-up talks with Russia's oil and gas major Gazprom for exploration of hydrocarbon blocks both in India and Russia. Besides, it is also exploring possibilities of roping Gazprom for its proposed 20 MMTPA LNG terminal at Mundra.

The state run PSU has also initiated talks with Stroytransgaz (STG) for jointly setting up various pipeline projects including the proposed Mehsana to Srinagar pipeline project.

"The deputy chairman of Gazprom and senior officials of STG met Gujarat chief minister Narendra Modi and discussed possibilities of future tie-ups," said chief secretary, D Rajagopalan. The chief minister along with a high-level delegation visited Russia early this week.

GSPC, through its subsidiary Gujarat State Petronet Ltd (GSPL) is planning to lay down pipeline network from Gujarat to Punjab right upto Jammu and Kashmir. The 960 km pipeline will be laid between Mehsana to Bhatinda in first phase. Later on, it will be extended by about 450 km from Bhatinda to Srinagar, sources privy to the development said.

"We have held talks with STG for the J&K pipeline project. When it comes to competitive bidding, it's very difficult to beat the Russians. We are exploring exploration activities with Russia's state-owned Gazprom both there and in India," said S Jagdeesan, Principal Secretary, Energy and Petrochemicals department, Gujarat. He said that the Russian oil and gas companies have shown interest in the entire energy value chain of GSPC.

When asked if GSPC has shown interest in participating with Gazprom in oil and gas exploration projects including Shakhalin-3 in Russia, Rajagopalan said, "Yes, they are open to that." He, however refused to give details of any specific project.

A delegation from Russia will be visiting Gujarat in near future, according to Rajagopalan. GSPC along with Adani group is also setting up an LNG terminal at Mundra which will be operational by 2011-12. "Gazprom has shown interest in LNG project," said DJ Pandian, MD of GSPC.

Besides, Gazprom and STG, Modi also held talks with officials of Russian oil and gas major Systema and Itera.

Modi was on a two-day visit to Moscow to participate in the International Energy Week and address the 4th International Energy Week and 9th Russian Oil and Gas Week conference where he was invited to deliver a key note address. The event was organized by the Ministry of Energy of the Russian Federation and Chamber of Commerce, Moscow.