New Delhi, Mar 26 (PTI) Chennai-based IMC Ltd has won oil regulator PNGRBs nod to lay a natural gas pipeline from Kakinada in Andhra Pradesh to Nellore in Tamil Nadu.
The Petroleum and Natural Gas Regulatory Board (PNGRB) last month issued the authorisation for the Kakinada-Vijayawada-Nellore pipeline.
According to the authorisation letter, the 522-km pipeline would have a capacity to carry 18 million standard cubic metres per day of natural gas.
Starting from Kakinada it will go to Rajahmundry and Vijayawada and onwards to Guntur and Ongole before terminating at Nellore, PNGRB said in the letter.
IMC is a port terminalling and infrastructure company that is engaged in bulk liquid tank storage, dry bulk terminals, international trading, and oil exploration businesses. Incorporated in 1935, the company was formerly known as The Indian Molasses Company.
According to the approval, IMC would also build 145 km of spur lines to feed customers enroute.
Kakinada is the landfall point of natural gas being produced from KG basin fields in Bay of Bengal. A floating liquefied natural gas (LNG) import facility is also planned at Kakinada and the pipeline would help that the fuel to customers down south.
Previously, Relogistics Infrastructure Ltd (Relog), a subsidiary of billionaire Mukesh Ambani-run Reliance Gas Transportation Infrastructure Ltd (RGTIL), had won approval to lay a Kakinada?Chennai pipeline. But the authorisation was cancelled as the company made little progress in implementing the pipeline.
Relog had also won government authorisation to lay Kakinada?Basudebpur?Howrah pipeline, Chennai?Bangalore?Mangalore pipeline and Chennai?Tuticorin line but nod for these too along with the Kakinada?Chennai line was cancelled because of little progress in implementation of these projects.
PNGRB said IMCs Kakinada-Vijayawada-Nellore pipeline would have 4.5 mmscmd capacity for leasing to third parties on common carrier principle basis.
"The entity is allowed a maximum period of 36 months from the date of issue of the authorisation letter for commissioning of the natural gas pipeline project," it said.
Failure do comply with the target deadline would attract consequences, the regulator said adding the company would have to submitted a financial closure report to the Board within 180 days. PTI ANZ SA