OREANDA-NEWS. May 05, 2011. The Petroleum and Natural Gas Regulatory Board (PNGRB) has issued an ultimatum to Reliance Gas Transportation Infrastructure Ltd, an arm of Mukesh Ambani-owned RIL, for its failure to start pipe-laying works to supply gas from the KG Basin in Andhra Pradesh. A decision to this effect was taken at the open house conducted in New Delhi on Wednesday following a complaint by the state against RIL. The ultimatum directs Reliance to reply in 15 days as to why the licence should not be cancelled, state government sources told TOI. Reliance has to complete the construction of two trunk lines in the state by June 2012.

The two lines are Kakinada-Vizianagaram-Srikakulam (200 KM) and Kakinada-Ennore-Nellore- Chennai. These lines are part of the Reliance's two trunk lines that run from Kakinada to Haldia (1100 km) and to Channai (445 km). According to sources, Reliance said that the production had fallen short of the target because of which it could execute only one pipeline that carries natural gas to Gujarat from its D-6 Block in KG Basin, totally ignoring the the other projects. Andhra Pradesh Gas Infrastructure Company Limited (APGIC), a joint venture of APIIC and APGENCO, opposed the Reliance approach and lodged a complaint with PNGRB.