GSPC to spend Rs 2,000 crore on gas terminal at KG-Basin

Gujarat State Petroleum Corporation (GSPC), a Gujarat government-owned oil and natural gas entity, will be spending over Rs 2,000 crore on its proposed gas terminal at Mallavaram near Kakinada in East Godavari district of Andhra Pradesh.

According to sources, the Ministry of Environment and Forests has asked the state-owned oil and gas explorer to submit certain details with regard to critical environmental issues identified during laying of pipeline for the project.

Sources said the construction work is going in full swing and is likely to be completed by next year.

The proposed terminal will process and supply gas from Deen Dayal West block in KG Basin in KG-OSN-2001/03.

GSPC, last year, awarded the work for OGT at Deen Dayal Field Development project to Engineers India Ltd (EIL) and signed a Memorandum of Agreement with it for the purpose.

"Total cost of the project is expected to be Rs 2,030 crore. It includes laying of 20 underground gas pipelines along with OFC and 10 effluent disposal pipelines passing through CRZ area of Yanam-Puducherry," sources told PTI.

"The gas evacuation from the terminal will be done using pipeline to East West pipeline (EWPL) of Reliance Gas Transportation Infrastructure Limited (RGTIL)," sources added.

"The initial gas quantity expected at onshore gas terminal (OGT) is 240 million metre standard cubic feet per day (MMSCFD), which is expected to progressively increase to 300 MMSCFD," they indicated.

This proposal was considered by AP state Coastal Zone Management Authority (APCZMA) in November 2012 and recommended to MoEF, sources said.

GSPC officials could not be reached for comments.

The Union Ministry of Petroleum and Natural Gas had last year approved an extension of 20.5 square kilometres to its existing contract for the KG Block (KG-OSN-2001/3).

The field development plan for the Deen Dayal West area in the KG block, which includes KG-8, KG-15, KG-17 and KG-28 wells, was approved by the government in November 2009.