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Rediff.com  » Business » Reliance Fuel seeks gas distribution licences

Reliance Fuel seeks gas distribution licences

September 21, 2007 17:53 IST

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

RFRL Group President A N 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 (Rs 160 billion) 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."

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