India Will Breathe Easier Under GAIL's New Natural Gas Pipeline Scheme

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India Will Breathe Easier Under GAIL's New Natural Gas Pipeline Scheme

Tue, 12/06/2016 - 15:17
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India Will Breathe Easier Under GAIL's New Natural Gas Pipeline Scheme
India Will Breathe Easier Under GAIL's New Natural Gas Pipeline Scheme

GAIL India, the largest state-owned natural gas processing and distribution company in India, will seek to increase its national pipeline network from 4000 to 16,000 km by 2020. In so doing it will continue its expansionist course and connect more Indian cities with cleaner fuel.

During the past 5-6 years of his tenure Chairman BC Tripathi has virtually doubled the capacity of the GAIL pipeline network. The company has also commissioned a power plant in Dabhol which had been closed the previous ten years. The plant will operate on liquid natural gas (LNG).

This is welcome news, but there is much still to be done -- all of the old pipelines in the network are running at losses. Tripathi notes they are running at 7%, 10%, 15% and 20% of their capacities.

Furthermore Tripathi is committed to helping India reduce its air pollution (India ranking among the world's worst polluters) by increasing the share of natural gas in the energy mix. Tripathi says this initiative will need fiscal support. Currently, for example, there is a customs duty on gas but not on crude oil.

Link:

http://economictimes.indiatimes.com/opinion/interviews/gail-will-have-16...

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