The network of the main pipeline will further provide connectivity via spur pipelines to many other cities and towns for industrial, commercial and city gas distribution systems.
Furthermore, the 32 million metric standard cubic meter per day (mmscmd) Jagdishpur-Haldia pipeline will set up an energy corridor for major industrial use by fertilizer and steel plants along the pipeline way. U D Choubey, GAIL chairman-cum-managing director said, This ambitious GAIL pipeline, besides covering four districts of Bihar, will branch off into two spur pipelines near Bhaktiarpur, one going to Chhapra up to West Champaran and the other up to Barauni. Gail, after signing an MoU with IOC, will supply gas to Barauni’s presently defunct fertilizer plant and proposed petrochemical plant.
Previously, GAIL has signed an agreement for providing natural gas to Barauni plant of Urvarak Videsh. Under the term sheet, GAIL will provide 2.11 MMSCMD gas to Barauni plant, the initial supply date in case of Barauni being October 2012-June 2013. The Jagdishpur-Haldia pipeline will provide gas, sourced from KG Basin block, to the Barauni plant. With this, the revival of two Barauni units is planned to be concluded by 2012-2013 through joint venture of Rashtriya Chemical and Fertilisers (RCF), National Fertilizers Limited (NFL) and Kribhco under the name Urvarak Videsh Limited.
The revival of Barauni unit will enhance fertilizer availability in the vicinity and bridge demand-supply gap of urea in Bihar and increase agricultural and economic development in the area and increase self-reliance in the urea sector. GAIL has also signed a memorandum of understanding (MoU) with Indian Oil Corporation Limited for co-operation in the area of petrochemicals to explore the possibility of establishing a cracker complex, including downstream derivatives, at Barauni, Choubey said.
GAIL chief managing director said that GAIL has signed a MoU with IFFCO for establishing a gas-based power plant at Bettiah. The proposed power plant, obtaining gas from the Jagdispur-Haldia pipeline, will have a capacity of 250-300 megawatt. The location of the plant, identified near Bettiah-Chanpatia state highway and NH-28, will be established at an estimated investment of INR15 billion.
