OREANDA-NEWS. July 8 2011. The gas regulator Petroleum and Natural Gas Regulatory Board (PNGRB) issued much awaited authorisation to the state venture Gujarat State Petronet Limited (GSPL). It clears the path for GSPL to lay 4,000 km long pipelines on three routes at an investment of Rs 12,500 crore. GSPL and its consortium partners representing oil marketing companies held meetings with PNGRB officials in Delhi on Wednesday and Thursday.

PNGRB chairman L Mansingh confirmed the development. He said, "As per the terms of the LoI issued in May, GSPL has proceeded for bank guarantee and agreed to commission three cross country gas pipeline projects within 36 months." PNGRB sought performance bond worth Rs 60 crore from GSPL.

GSPC and IOC control 52% and 26% respectively while refining and retail majors BPCL and HPCL have 11% stake each in the project that has been hanging fire since four years. Currently, GSPL transports over 35 MMSCMD of gas through its 1,573 km of gas grid in Gujarat. Proposed pipelines will carry around 100 MMSCMD of gas and traverse through Andhra Pradesh, Maharashtra, Madhya Pradesh, Gujarat, Rajasthan, Haryana, NCR, Punjab and Jammu & Kashmir.

Earlier, consortiums led by GSPL emerged as the most competitive bidders for Bhatinda - Jammu pipeline (700 km), Mallavaram - Bhilwara pipeline (1595 km) and Mehsana - Bhatinda (1650 km). However, PNGRB could not issue LoI to GSPL on account of legal complications. The LoI will enable the consortium to proceed for fund raising for 4,000 km gas transmission projects entailing an investment of Rs 12,500 crore.