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There is an imperative need for the Union Oil and Gas Ministry, the oil companies, and the private agencies to work together for laying the vast cross-country pipeline network needed for distribution of oil, gas, and related products in the coming decades, according to P. Lakshmi, Union Minister of State for Petroleum, Natural Gas and Textiles.
She was speaking at a seminar here on Friday organised jointly by Gas Authority of India Ltd (GAIL) and the Centre for High Technology on oil and gas pipelines. She said a concerted effort by all agencies would be needed to draw up the plans, mobilise the resources and implement such a massive programme in a proper manner.
“It is the pre-requisite for energy security and future economic growth of our country and we must all strive towards it,” she said. Union Petroleum Secretary Vivek Rae spoke about the challenges in laying the required pipeline.
“We need at least an additional 1,00,000 km length of pipeline network across the country and at the rate of Rs 6 crore/km, we need no less than Rs 6,00,000 crore in the next 15-20 years.
“For that our savings and investment rate has to rise to 40 per cent. We cannot hope for much FDI in the sector. Tough decisions need to be taken and, if we fail to take them, there will be anarchy,” he remarked. He also spoke about regulatory challenges, the issue of right of use, safety aspects and planning issues. “We have to address all these issues. However, I am optimistic we will rise to the challenge and acquit ourselves well,” he added.
HPCL Chairman and Managing Director S. Roy Choudhary who gave an overview of oil and gas pipeline transportation, said currently pipeline transportation of oil and gas accounted for 43 per cent in the country and it should be taken to 58 per cent or more, as it is the cost-effective, eco-friendly and safest mode of transport. HPCL is also laying four cross-country pipelines, amounting to more than 1,000 km in all. It is necessary to formulate a regulatory framework which ensures a level playing field for all players.
“We also need to address the land acquisition issues, right of way and related issues,” he said. B.D. Ghosh, Executive Director of the Centre for High Technology; S. Venkataraman, Director (Business Development) of GAIL, and R. Krishna Murthy, Director of Centre for High Technology, also spoke.
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