Class Notes 123212w

Barauni-Guwahati Gas Pipeline:
The Barauni-Guwahati pipeline section executed on a capital outlay of Rs 3,300 crore is an

integral part of the prestigious 3,405 km-long JHBDPL project, popularly known as 'Pradhan
Mantri Urja Ganga', executed by GAIL, and envisages to connect eastern and north-eastern India
to the existing natural gas grid. This project is planned to cover eastern Uttar Pradesh, Bihar,
Jharkhand, West Bengal, Odisha and Assam. GAIL officials said that JHBDPL project is
progressing in full swing and the first phase is scheduled for completion by December 2018.The
project will usher industrial development in eastern part of India by supplying environmentally
clean natural gas to fertilizer units, power plants, refineries, steel processing plants and other
industries. It will also provide clean energy to households and transportation through the city gas
distribution networks through the pipeline. City Gas distribution projects have been
commissioned at Varanasi, Bhubaneswar and Cuttack while project activities are in progress at
other cities of eastern India. GAIL (India) Limited has awarded the first contract for purchase of
108 km 24-inch diameter line pipes under the Barauni-Guwahati segment of the Jagdishpur-
Haldia and Bokaro-Dhamra Natural Gas Pipeline (JHBDPL) project. The contract for purchase
of line pipes of 108 km was awarded to M/s Ratnamani at a total cost of Rs 125 crore. Line pipe
procurement activities for the rest of the 600 km trunkline up to Guwahati is at an advanced
stage of tender process, a senior official of the M/s Ratnamani said on Thursday.
Point of view of various Stakeholders:
Assam Gas, a state government enterprise, has submitted an expression of interest to the
Petroleum and Natural Gas Regulatory Board (PNGRB), the downstream regulator, to lay, build
and operate the pipeline from Barauni in Bihar to Guwahati via Bongaigaon.
It has also proposed to build spur lines to link both the banks of the river Brahmaputra to connect
with Arunachal Pradesh and Nagaland. Another spur line is proposed to connect to Tripura
through Meghalaya and Barak Valley.
PNGRB has now begun a consultation process and sought views from all stakeholders on the
proposed pipeline.
The demand for natural gas in its operational area far exceeds the existing supply, Assam Gas
said in its proposal, highlighting that it had identified an additional demand of at least 13 million
metric standard cubic meters per day (mmscmd) in Assam. The company currently handles about
5.5 mmscmd of natural gas.
“If gas is made available, the demand will increase as new potential consumers are setting up
units as part of the government of Assam’s efforts to stimulate industrial growth. As there has
been no significant new gas finds in the north-eastern region, it is necessary to bring in gas from
outside the region,” the company said.
It further said, “The company is fully capable of mobilising resources, has the necessary
experience and expertise and has the support of the government of Assam at the highest levels to
execute the project.”
The proposed pipeline will have a capacity of 15 mmscmd and will source gas at Barauni from
Jagdishpur-Haldia pipeline being built by GAIL.
State-run GAIL is building a 2,620-km gas pipeline from Jagdishpur in Uttar Pradesh to Haldia
in West Bengal, Bokaro in Jharkhand and Dhamra in Odisha. The pipeline will have the capacity
to transport 16 mmscmd of gas, which is expected to be received from multiple sources including
liquefied natural gas or LNG from import terminals at Dahej, Dabhol and Dhamra, and coal bed
methane field of Reliance Industries in Madhya Pradesh.
The proposed pipelines of Assam Gas, GAIL and other companies are expected to significantly
enhance the country’s gas pipeline network. The government aims to double the gas pipeline
network to 30,000 km in the next few years.
Opinion from the point of view of a Proposer:
One of the objectives of this Vision is transition towards use of sustainable forms of energy by
developing a natural gas grid and CNG highways that will inter-connect the states in the ~orth
East Region (NER) as well as with National Gas Grid (NGG), which will increase consumption
of Natural Gas as a fuel of choice. Presently, around 950 Km of Natural Gas Pipelines are
opera~ing in North East India, covering parts of key demand centres such as Assam and TI-
ripura. Further, it was deliberated in the Vision Document that Barauni is already bleing
connected to the NGG the Jagdishpur-Barauni Pipeline and hence laying a pipellne from Barauni
to the rest of North East India will connect NER with NGG at Barauni.
Opinion from the point of view of an Independent Consulting Firm:
A 750-km proposed natural gas pipeline will link the Northeast with the national grid to meet
increasing fuel needs of households and factories in the region, as part of the Modi government’s
plan to expand gas availability and double the gas pipeline network in the next few years. The
network is proposed to span 800-900 km and is expected to cost Rs 3,600-4,050 crore. Once
completed, all key gas demand-supply centres in the region will be connected. However, the
project is economically non-viable and still to take off.
Besides connecting the Northeast to the national gas grid, the gas-producing station needs to be
connected to other demand centres. As Mizoram and Tripura will account for bulk of gas
production, it is imperative to connect these two states on a priority basis. Further, as Barauni is
already being connected to the national gas grid through Jagdishpur-Barauni pipeline, it makes
sense to propose pipeline from Barauni to the rest of the Northeast.

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Barauni-Guwahati Gas Pipeline:

The Barauni-Guwahati pipeline section executed on a capital outlay of Rs 3,300 crore is an

Point of view of various Stakeholders:

Opinion from the point of view of a Proposer:

Opinion from the point of view of an Independent Consulting Firm:

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