Anil Ambani-owned Reliance Energy has approached state-owned gas utility GAIL (India) Ltd for transportation of gas to its proposed 4,000 MW power plant at Dadri.
GAIL has offered to transport gas from Kakinada, the landfall point of natural gas from Reliance Industries' owned Dhirubhai fields in offshore Krishna-Godavari basin, to Dadri by using a part of the existing Hazira-Vijaipur-Jagdishpur network, a company statement said in New Delhi.
Reliance Energy is looking for pipeline connectivity of gas for transporting about 20 million standard cubic meters per day of natural gas required for the plant by 2008.
REL has plans to expand the capacity of the Dadri power plant to 8,000 MW, thereby increasing the demand of gas to 40 mmscmd.
"GAIL's proposed pipeline from Kakinada will connect to the HVJ pipeline system at Vijaipur in Madhya Pradesh for supply of KG basin gas to REL's power plant at Dadri," the GAIL statement said. The KG gas can then be picked up by the HVJ line, which transits very close to the Dadri plant site.
Anil Ambani's REL has an understanding with elder brother Mukesh Ambani's Reliance Industries for supply of gas to fire the Dadri plant. However, no formal agreement has been inked as yet.
Reliance Energy spokesperson could not be immediately contacted for comments.
"A configuration that yields optimal expenses, which is comparable to the direct pipeline from KG Basin to Dadri as well as additional gas supply security is being worked out," the GAIL release said but did not give details.
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