RIL put on notice over AP pipelines

Dec 23, 2010 |

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New Delhi, Dec. 22: Oil regulator PNGRB has virtually put Reliance Industries Ltd (RIL) on notice by inviting bids for sections of two natural gas pipelines that were previously awarded to the Mukesh Ambani-run firm.

The Petroleum and Natural Gas Regulatory Board (PNGRB) this month invited bids for two separate pipeline lengths down south, even though the question whether the regulator is empowered to give firms the authorisation to lay pipelines is to be decided by the Supreme Court.

Nevertheless, the PNGRB on December 15 invited Expression of Interest from parties interested in taking capacity in a pipeline from Chennai to Nellore that AP Gas Infrastructure Corp wants to lay, according to an advertisement by the Board. This section is part of the 600-km Kakinada to Chennai pipeline that RIL was authorised to lay to transport gas from its KG-D6 fields. It has similarly invited bids for a line from Kakinada to Visakhapatnam and Srikakulam.

RIL on the other hand has written to the PNGRB saying it has already completed acquisition of right-of-user for the pipelines and the delay, if any, in the im-plementation was due to the uncertainty over who the government will allocate gas from KG-D6.

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