ADAG applies for CGD licences in NCR, Mumbai

NEW DELHI: Anil Ambani Group firm Reliance Fuel Resources Ltd has re-applied for licences to set up city gas distribution (CGD) projects in the National Capital Region and Mumbai, citing KG basin gas fields of Reliance Industries as a source of fuel.

RFRL Group President AN Sethuraman on September 3 filed three separate applications with the Petroleum and Natural Gas Regulatory Board for licences to sell CNG to automobiles and piped gas to households in Mumbai, Delhi, Gurgaon, Faridabad, Ghaziabad and Noida.

On the same day, he also filed a separate application seeking permission to build a Rs 16,000 crore gas pipeline from Kakinada in Andhra Pradesh to Dadri in Uttar Pradesh.

"A large portion of the gas transported by the proposed pipeline will be utilised by the (proposed) 7,480 MW gas based power project near Dadri," the application stated.

RFRL had last year applied for CGD and pipeline approvals.

The 1,594-km pipeline would have a capacity of 50 million standard cubic meters per day (mmscmd), 60 per cent of which would be used for the Dadri power plant.

RFRL's application for CGD licences cited RIL's KG basin gas fields and other producers in the region as sources of gas.

"RNRL (an ADAG firm) has already entered into an agreement to purchase 28 mmscmd of natural gas from RIL's gas reserves in KG basin and other existing and future gas reserves of RIL. The quantity of gas available to RNRL could enhance to 40 mmscmd under certain conditions."

"Over and above this, RNRL is entitled to purchase 40 per cent of the balance gas available with RIL to meet its gas requirement."

Petroleum Ministry officials said authorisation for CGD and pipelines are contingent upon the proposer showing gas tie-ups through gas sales and purchase agreement.

ADAG and RIL are in court over gas supplies.

RFRL pipeline would travel from Gadimoga (Kakinada) to Nagpur to Vijaipur and finally to Dadri. It will connect GAIL's Hazira-Vijaipur-Jagdishpur pipeline at Vijaipur.

After using 30 mmscmd capacity for transporting gas for the Dadri power plant, RFRL would offer the balance capacity to other gas producers in the KG basin.

In Phase-II, capacity in the Kakinada-Vijaipur stretch would be enhanced to 70 mmscmd, the application said, adding that the company had originally submitted its application for authorisation to lay the pipeline on May 11, 2006.

RFRL had submitted an application for CGD licences in Delhi and Mumbai on May 24, 2006 and that for NCR cities on August 31, 2006.