Reliance wants to set up CGD networks in Visakhapatnam, Kakinada, Vijayawada, Nalgonda and Hyderabad in Andhra Pradesh and Sholapur, Pune and Thane in Maharashtra to supply natural gas through pipes to households for use as cooking fuel, the company said in a proposal to the petroleum ministry.
It also plans to supply gas, sourced from its gigantic field in Bay of Bengal, to commercial consumers likes hotels, restaurants and hospitals and industries and automobiles (in the form of Compressed Natural Gas or CNG).
The company said Dhirubhai-1 and Dhirubhai-3 discoveries in KG-DWN-98/3 (or KG-D6) block off the Andhra coast would produce 40 milion standard cubic meters per day from mid-2008 and CGD projects, once allocated to Reliance, would begin rolling out from 2008-09 fiscal end.
Reliance has received approval for the East-West pipeline -- Kakinada-Hyderabad-Uran-Ahmedabad pipeline -- to transport the KG-D6 gas.
Reliance plans to supply 8 million standard cubic meters of gas per day to Visakhapatnam, Kakinada (0.4 mmscmd), Vijayawada (0.8 mmscmd), Nalgonda (0.3 mmscmd) and Hyderabad (1.2 mmscmd) in Andhra Pradesh and Sholapur (0.4 mmscmd), Pune (1 mmscmd) and Thane (3 mmscmed)
Spur lines connecting East-West pipeline to eight cities proposed for CGD would cost about Rs 900 crore (Rs 9 billion), Reliance said, adding the total cost of City Gas Distribution project in these cities was likely to be in the range of Rs 5,000 crore (Rs 50 billion).
Spur lines of 145-km to Visakhapatnam, 40-km to Kakinada, 39-km to Vijayawada, 26-km to Nalgonda, 15-km to Hyderabad, 60-km to Sholapur, 20-km to Pune and 32-km to Thane are planned from the East-West pipeline.
"The transmission pipeline from Kakinada to Ahmedabad for supply of gas would be laid in synchronisation with production from KG-D6 which is scheduled from mid 2008," the company said. Spur lines would be laid by 2008-09.
"The city gas projects have longer gestation period. However, supply of gas could be introduced in the city by 2008-09 from basic grid to industrial consumers and Mother CNG stations.
Distribution network may take 3 to 5 years to cover the area including domestic/commercial consumers," the proposal said.
Reliance was keen to supply gas to bulk consumers in core sectors like power and fertiliser by laying dedicated
spur lines to these plants.
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