Union Petroleum Secretary Vivek Rae said the country needs at least an additional 100,000 km length of gas pipeline network across the country.
In order to lay this length of pipeline, the country needs
at least Rs 600,000 crore at the rate of Rs 6 crore per km in the next 15-20 years, he said while addressing a seminar organised jointly by Gas Authority of India (GAIL) and the Centre for High Technology on oil and gas pipelines.
In order to achieve this capital expenditure, the country’s savings and investment rate has to rise to 40 per cent as there is no hope for much FDI in the sector, he said. He also spoke about regulatory challenges, the issue of right of use, safety aspects and planning issues.
Union Minister of State for Petroleum, Natural Gas P Lakshmi talked about the imperative 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.
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.
S Roy Choudhary, Chairman and Managing Director of HPCL 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.
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