GSPL, 3 oil PSUs ink pact for cross-country gas pipelines

Gujarat State Petronet Ltd (GSPL) and three public sector oil companies — Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) — have entered into joint venture agreements for setting up three cross-country natural gas transmission pipelines.

According to a statement filed with the Bombay Stock Exchange, the GSPL-led consortium executed the agreements on April 30 for developing the pipelines of 3,995 km.

The consortium partners were awarded the letters of authorisation (LoA) on July 7, 2011, by the industry regulator, Petroleum & Natural Gas Regulatory Board. The three pipelines are Mallavaram-Bhilwara (1,585 km), Mehsana - Bhatinda (1,670 km) and Bhatinda-Jammu-Srinagar (740 km).

In the consortium, GSPL holds a 52 per cent stake, while IOCL owns 26 per cent. BPCL and HPCL hold 11 per cent each.

The three projects are required to be completed within 36 months from the date of award of the LoA to the consortium. With the execution of the joint venture agreements, the equity tie-ups for the projects had been completed, GSPL stated.