The Cyberabad Times

AP economy to get a natural gas boost

The Andhra Pradesh Government is in the process of finalising plans to woo private sector to harness the potential of the huge gas find in the Krishna-Godavari basin. Speaking at a conference on Natural Gas hosted by the Confederation of Indian Industry, the State Information and Power Minister, Mohd Ali Shabbir, said given the proximity of the wells to the State, Andhra Pradesh would be ideally placed to tap the gas reserves. The gas grid planned by the State would be able to reach out gas both to industrial and domestic consumers through a pipeline network. The Gujarat State petroleum Corporation (GSPC) has struck gas in the KG basin and the reserves are estimated at 20 trillion cubic feet (TCF) worth about $50 billion. The State is in the process of finalising plans to partner with GSFC and other stakeholders for a pipeline to evacuate and supply gas.

Reliance Industries Ltd on Friday hinted at investing about $ 6-7 billion (about Rs 27,000 crore to Rs 32,500 crore) to tap the huge natural gas potential in the Krishna-Godavari (KG) basin wells. By mid-2008, the first phase of the gas project in the KG basin will be ready. This project has the potential to add about $20 billion to the GDP, and potentially support 10,000 MW of power generation, according to R.P. Sharma, President of Gas Business, Reliance Industries. Reliance is extremely optimistic on the overall outlook of the potential in the sector and has initiated several projects, and KG is a priority area.As a part of this pipeline project, Reliance is in the process of laying down a 1,400-km, 48-inch pipeline from Kakinada to Ahmedabad. The first batch of 10,000 tonnes of pipeline (imported) is set to land in Andhra Pradesh on May 18.

AP economy to get a natural gas boost

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