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GAIL offers to build pipeline for Reliance

GAIL India has offered to build a Rs 11,000 crore (Rs 110 billion) pipeline grid for transportation and marketing of Reliance Industries' 40 million standard cubic metre per day gas discovery in Krishna Godavari basin, off the east coast.

"We are talking to Reliance Industries for marketing and transportation of their latest find in KG basin," GAIL chairman and managing director Prashanto Banerjee said in New Delhi.

GAIL has already had initial discussions with RIL top brass on the proposal involving building of pipelines to selling gas to customers, he said.

Banerjee, however, declined to elaborate on the proposal.

The pipeline project envisages linking Kakinada in Andhra Pradesh to Goa, a distance of 1,300 km, followed by 2,500 km Jamnagar-Bhopal-Cuttack link.

GAIL has also proposed to lay 200-km offshore pipeline for RIL form the gas well-head to landfall point in Kakinada. The total cost of the project may be upwards of Rs 11,000 crore.

The total 'in-place' volume of gas in the D-6 block operated by RIL, in consortium with Niko Resources of Canada, is 7 trillion cubic feet, equivalent to 165 tonnes of crude oil.

"Large gas markets exist in east, south and western India. We anticipate that Reliance gas would find sufficient offtakers in these areas," Banerjee said while indicating that GAIL was also in dialogue with Cairn Energy of UK and Niko Resources, who too have struck gas in KG basin and Surat blocks, respectively.

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