British Gas keen to pick stake in Reliance pipeline

Hindustan Times, New Delhi
British gas India Pvt Ltd has offered to pick up capacity in the gas pipeline connecting Kakinada-Vijaywada-Nellore and Chennai, to be set up by Reliance Gas Transportation Infrastructure Ltd (RGTIL) and has submitted an expression of interest for the same to the petroleum ministry.

BG India is currently engaged in exploring various upstream opportunities in the east coast of India. It is also exploring the possibility of setting up a downstream city gas distribution project in South India. RGTIL is a subsidiary of the Reliance group set up for estbalishing pipeline infrastructure.

The expression of interest (EoI) relates to capacity reservation in the pipeline proposed to be laid by RGTIL BG India is wholly owned subsidiary of BG Group, one of the world's leading energy companies with expertise in every stage of gas chain- from exploration and production, through trading, transportation and distribution to market development.

BG India managing director William Adamson in his letter to Manu Srivastava director (natural gas) in the petroleum ministry says, �The gas that we propose to transmit through the pipeline would be from multiple sources depending upon successful consummation of equity participation/farm-in to discoveries by other gas producers in the east coast of India, including without limitation, deep water blocks in the Krishna Godavari Basin.� It would also include purchase of gas from producers in the East coast and acquisition of acreage via NELP-VI process.

Citing the confidentiality agreements that it has entered upon with prospective partners, BG India has sought a confidentiality agreement with RGTIL, not to divulge the �specific information in relation to the source of gas that we propose to transmit through the pipeline.� The EoI shall be subject to completion of a comprehensive technical, commercial, legal, environmental and financial due diligence. Adamson in his letter has also categorically stated, �The EoI is subject to completion of the due diligence, all to the satisfaction of BG India. We would also expect RGTIL to provide us copies of material documents and agreements as we may reasonably request.�