GAIL beats IOC to win licence to build Gurdaspur-Jammu gas pipeline

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GAIL (India) Ltd, the nation's largest gas distributor, beat Indian Oil Corporation (IOC) to win a licence to build a gas pipeline from Gurdaspur in Punjab to Jammu, oil regulator PNGRB said.

In a statement, Petroleum and Natural Gas Regulatory Board (PNGRB) said it had in January invited application cum bids for grant of authorisation for the Gurdaspur-Jammu pipeline.

"The last date for submission of bids for the Gurdaspur-Jammu natural gas pipeline was May 17, 2023. Two bidders namely, GAIL (India) Ltd and Indian Oil Corporation have submitted their bids," it said.

Both bidders were found to be technically qualified and financial bids were opened on June 21.

"As per preliminary evaluation of the financial bids, it appears that GAIL (India) Ltd has the highest composite score and is the successful bidder for the Gurdaspur-Jammu natural gas pipeline," it added.

The 175-km long pipeline is to carry the environment-friendly fuel to Jammu. The pipeline will have an initial capacity to carry at least 2 million standard cubic meters per day.

PNGRB bid out the pipeline licence on the lowest tariff offered for transporting the gas.

Originally, the Bhatinda-Jammu-Srinagar natural gas pipeline was awarded to Gujarat State Petronet Ltd (GSPL)-led consortium, which later on registered as a company named GSPL India Gasnet Ltd (GIGL).

However, GIGL failed to lay the pipeline within the stipulated time, following which PNGRB cancelled the authorisation and suo-motu invited bids for the Gurdaspur-Jammu line.

PNGRB disqualified GIGL and its lead partner GSPL from submitting a bid for the proposed pipeline.

The regulator however did not specify the timeline for the completion of the pipeline.

GAIL is India's largest gas firm, operating a 15,400-km pipeline network. It sells about 95 mmscmd of gas, or nearly two-thirds of all gas sold in the country.