North East Natural Gas Pipeline Grid/Indradhanush Gas Grid Limited : News and Updates

Gautam

Gautam

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Cabinet Committee on Economic Affairs (CCEA)

Cabinet approves Capital Grant as Viability Gap Funding to Indradhanush Gas Grid Limited for setting up the North East Natural Gas Pipeline Grid​


Posted On: 08 JAN 2020 3:11PM by PIB Delhi


The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has given its approval as under :

  • The North East Gas Grid project of Indradhanush Gas Grid Limited with viability Gap Funding/ Capital Grant at 60% of the estimated cost of Rs 9265 crore (Including interest during construction). Quantum of VGF would be capped at 60% of estimated project cost and would not be linked with upward capital cost variation. MoPNG shall identify milestones for major activities for this project and link the same for releases of capital grant of the project.

  • For effective monitoring of the project implementation, a Committee comprising of officials from Ministry of Petroleum & Natural Gas, Department of Expenditure, Ministry of Development of North East Region, Ministry of Environment, Forest & Climate Change, and Department of Fertilizers, may be formed, which would periodically review the progress in implementation of the project and take steps to smoothen out any issues in execution.

Total length of pipeline is 1656 KM and tentative project cost is Rs 9265 crore.As per the plan, Gas Pipeline Grid would be developed in the eight states of the North-Eastern region i.e. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.

The Capital Grant will provide natural gas supplies to various types of consumers viz. Industrial, PNG(Domestic), CNG (Transport) etc. and would immensely help in substituting the liquid fuels. The pipeline grid would ensure reliability and uninterrupted natural gas supplies to the consumers which otherwise gets severely affected due to various reasons in this part of the country.

Availability of Natural gas across the region is expected to boost industrial growth without impacting the environment and would offer better quality of life to the people in general due to use of cleaner and green fuel.


Socio-Economic and Environmental Benefits :

  • Development of industrial climate in eight states of the north-eastern region i.e. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.
  • Reduction in the usage of kerosene, wood etc. due to increased usage of environment friendly fuel natural gas thereby improving the environment in the region.
  • Improvement in the standard of living of peoples living in the region.
  • It will boost Exploration & Production activities and connect regional gas sources with pipeline network for early monetisation of natural resources in the region.
  • Possibility of installing bottling plants for LPG can be explored for reducing transportation cost. Uninterrupted supply of LPG and other value added products can be ensured in the region which will bring energy security to the people in the area.

Background :

To usher in Gas based economy and to increase the share of natural gas in country's primary energy mix, Government is taking focused steps viz. enhancing domestic gas production, expeditious development of gas infrastructure including pipelines, City Gas Distribution (CGD) networks and Re-gasified Liquefied Natural Gas (R-LNG) Terminals as well as development of Gas market by providing open access to gas infrastructure.

Indradhanush Gas Grid Limited (IGGL), a joint venture company of five CPSEs (IOCL, ONGC, GAIL, OIL and NRL) has been incorporated on 10.08.2018 to develop and operate Natural gas pipeline grid in North-East region. Petroleum & Natural Gas Regulatory Board (PNGRB) has also issued provisional authorization to IGGL on 14.09.2018 for the development of North-East Gas pipeline grid.

Cabinet approves Capital Grant as Viability Gap Funding to Indradhanush Gas Grid Limited for setting up the North East Natural Gas Pipeline Grid

@Ashwin @_Anonymous_ @BlackOpsIndia @vstol Jockey @Nikhil @Milspec @vingensys et al
 
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Centre to foot 60% cost of North East Gas Grid

Updated: 08 Jan 2020, 04:30 PM IST
By Utpal Bhaskar
  • The CCEA today approved the IGGL project 'with viability gap funding/capital grant at 60% of the estimated cost of ₹9,265 crore.
  • Centre will provide ₹5,559 crore towards the construction of the North East Gas Grid project across Arunachal, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura

gas_1578481125533.jpg

The 1,656 km gas pipeline project will also help improve the future geo-economics of the region.(Photo: Mint)

NEW DELHI : As part of government’s focus on India’s northeast, the Union government will provide ₹5,559 crore towards the construction of the North East Gas Grid project across the states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura.

The Cabinet Committee on Economic Affairs on Wednesday approved the marquee project of Indradhanush Gas Grid Limited “with viability Gap Funding/ Capital Grant at 60% of the estimated cost of ₹9,265 crore (Including interest during construction)."

Currently, the country’s northeast region is in turmoil because of protests against the government’s contentious Citizenship (Amendment) Act, 2019.

India is the biggest emitter of greenhouse gases after the US and China and the latest move is in sync with the government’s Act East policy, with to transform the northeast region into a gateway to Southeast Asia. The plans include the India-Myanmar-Thailand Trilateral Highway, that will help improve connectivity between India and Thailand and others in the neighbourhood, and a global electricity grid that may initially aim to link countries such as Myanmar, Thailand, Cambodia, Laos, and Vietnam with the Indian sub-continent as part of an evolving energy security architecture.

“The Capital Grant will provide natural gas supplies to various types of consumers viz. Industrial, PNG (Domestic), CNG (Transport) etc. and would immensely help in substituting the liquid fuels. The pipeline grid would ensure reliability and uninterrupted natural gas supplies to the consumers which otherwise gets severely affected due to various reasons in this part of the country," the government said in a statement.

The 1,656 km gas pipeline project will also help improve the future geo-economics of the region. Indradhanush Gas Grid Limited (IGGL) is a joint venture company of state run Indian Oil Corporation Ltd, Oil and Natural Gas Corporation, GAIL (India) Ltd, Oil India Ltd and Numaligarh Refinery Ltd.

The National Democratic Alliance government has been pushing for a gas-based economy. India plans to connect 10 million households to piped natural gas by 2020.

Gas accounts for around 6.2% of India’s primary energy mix against the global average of 24%. The government plans to increase this to 15% by 2030. India’s gas demand is expected to be driven by fertilizer, power, city gas distribution and steel sectors.

With an eye on China, India is also working on a slew of road and bridge projects to improve connectivity with Bangladesh, Nepal and Myanmar. These include road networks connecting Aizawl in Mizoram with Kaladan in Myanmar and Imphal in Manipur with Tamu, also in Myanmar. India is also expediting the South Asian Sub-Regional Economic Cooperation (SASEC) road connectivity programme. Japan has also joined hands with India to aggressively develop infrastructure projects in the region with the setting up of the India-Japan Coordination Forum for Development of northeast.

India has been instrumental in implementing the India-Myanmar-Thailand Trilateral Highway, which will run from Moreh in Manipur to Mae Sot in Thailand via Myanmar. The plan also involves extending it to Cambodia, Laos and Vietnam and the project forms an important part of India articulating its role in the proposed transportation architecture in the region and beyond.

Centre to foot 60% cost of North East Gas Grid
 
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Gautam said:
Cabinet Committee on Economic Affairs (CCEA)​

​

Cabinet approves Capital Grant as Viability Gap Funding to Indradhanush Gas Grid Limited for setting up the North East Natural Gas Pipeline Grid​


Posted On: 08 JAN 2020 3:11PM by PIB Delhi


The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has given its approval as under :

  • The North East Gas Grid project of Indradhanush Gas Grid Limited with viability Gap Funding/ Capital Grant at 60% of the estimated cost of Rs 9265 crore (Including interest during construction). Quantum of VGF would be capped at 60% of estimated project cost and would not be linked with upward capital cost variation. MoPNG shall identify milestones for major activities for this project and link the same for releases of capital grant of the project.

  • For effective monitoring of the project implementation, a Committee comprising of officials from Ministry of Petroleum & Natural Gas, Department of Expenditure, Ministry of Development of North East Region, Ministry of Environment, Forest & Climate Change, and Department of Fertilizers, may be formed, which would periodically review the progress in implementation of the project and take steps to smoothen out any issues in execution.

Total length of pipeline is 1656 KM and tentative project cost is Rs 9265 crore.As per the plan, Gas Pipeline Grid would be developed in the eight states of the North-Eastern region i.e. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.

The Capital Grant will provide natural gas supplies to various types of consumers viz. Industrial, PNG(Domestic), CNG (Transport) etc. and would immensely help in substituting the liquid fuels. The pipeline grid would ensure reliability and uninterrupted natural gas supplies to the consumers which otherwise gets severely affected due to various reasons in this part of the country.

Availability of Natural gas across the region is expected to boost industrial growth without impacting the environment and would offer better quality of life to the people in general due to use of cleaner and green fuel.


Socio-Economic and Environmental Benefits :

  • Development of industrial climate in eight states of the north-eastern region i.e. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.
  • Reduction in the usage of kerosene, wood etc. due to increased usage of environment friendly fuel natural gas thereby improving the environment in the region.
  • Improvement in the standard of living of peoples living in the region.
  • It will boost Exploration & Production activities and connect regional gas sources with pipeline network for early monetisation of natural resources in the region.
  • Possibility of installing bottling plants for LPG can be explored for reducing transportation cost. Uninterrupted supply of LPG and other value added products can be ensured in the region which will bring energy security to the people in the area.

Background :

To usher in Gas based economy and to increase the share of natural gas in country's primary energy mix, Government is taking focused steps viz. enhancing domestic gas production, expeditious development of gas infrastructure including pipelines, City Gas Distribution (CGD) networks and Re-gasified Liquefied Natural Gas (R-LNG) Terminals as well as development of Gas market by providing open access to gas infrastructure.

Indradhanush Gas Grid Limited (IGGL), a joint venture company of five CPSEs (IOCL, ONGC, GAIL, OIL and NRL) has been incorporated on 10.08.2018 to develop and operate Natural gas pipeline grid in North-East region. Petroleum & Natural Gas Regulatory Board (PNGRB) has also issued provisional authorization to IGGL on 14.09.2018 for the development of North-East Gas pipeline grid.

Cabinet approves Capital Grant as Viability Gap Funding to Indradhanush Gas Grid Limited for setting up the North East Natural Gas Pipeline Grid

@Ashwin @_Anonymous_ @BlackOpsIndia @vstol Jockey @Nikhil @Milspec @vingensys et al
Click to expand...
Great initiative. Sir, if I'm right, India had a minority stake in gas fields in Myanmar. Any chance we can utilise that or other similar fields to supply this grid? Should be much more cost effective than globally sourced natural gas
 
vingensys said:
Great initiative. Sir, if I'm right, India had a minority stake in gas fields in Myanmar. Any chance we can utilise that or other similar fields to supply this grid? Should be much more cost effective than globally sourced natural gas
Click to expand...
Its quite the opposite actually. Bangladesh, Nepal, Myanmar and Bhutan wanted to import natural gas from NE. NE has plenty of gas, Assam and Tripura taking up most of the share. Assam does produce oil but not enough of it. Tripura produces no oil.

Bangladesh has in the past requested Delhi many times about the import of natural gas. Delhi has always shot that down, mostly due to a lack of gas infrastructure in the NE. Delhi has previously approved the export of diesel from Assam but not natural gas. When the Bangladesh govt. requested again a few years later Delhi approved the sale of excess electricity to Bangladesh from Tripura's Palatana gas power plant, but still no gas. Bangladesh still insists on importing gas from Tripura. Delhi asked Petronet LNG and IOC to set up a Regasification liquefied natural gas(RLNG) plant in Bangladesh with the long term intention of selling natural gas to Bangladesh and in turn importing LPG for the NE from Bangladesh. Seeing a gain in momentum Nepal is now also asking for the same.

The oil export-import and infra picture :

How India’s pipelines to Bangladesh, Nepal are changing oil trade dynamics

PM Modi, Sheikh Hasina inaugurate India-Bangladesh oil pipeline construction

LNG import to India from Bangladesh :

PM: LPG to be exported to India, not natural gas

Chronicles of many projects on going between India and Bangladesh along with the insistence on gas import :

‘Bangladesh should put pressure on India to export gas’

Bangladesh signs gas oil deal with India

As for Myanmar, or interest is exporting gas to them too. Once NE has a large integrated gas grid this can be done. Now Assam has a state grid so does Tripura, but there is not connect between them. The minority stake in the Myanmar's gas field is simply geo-politics. Remember OVL's stake in Vietnamese offshore oil ? Something like that. Myanmar doesn't produce enough gas to compete with Tripura and Assam, it make little economic sense to import from them. But denying China a stake is important.
 
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Gautam said:
Its quite the opposite actually. Bangladesh, Nepal, Myanmar and Bhutan wanted to import natural gas from NE. NE has plenty of gas, Assam and Tripura taking up most of the share. Assam does produce oil but not enough of it. Tripura produces no oil.

Bangladesh has in the past requested Delhi many times about the import of natural gas. Delhi has always shot that down, mostly due to a lack of gas infrastructure in the NE. Delhi has previously approved the export of diesel from Assam but not natural gas. When the Bangladesh govt. requested again a few years later Delhi approved the sale of excess electricity to Bangladesh from Tripura's Palatana gas power plant, but still no gas. Bangladesh still insists on importing gas from Tripura. Delhi asked Petronet LNG and IOC to set up a Regasification liquefied natural gas(RLNG) plant in Bangladesh with the long term intention of selling natural gas to Bangladesh and in turn importing LPG for the NE from Bangladesh. Seeing a gain in momentum Nepal is now also asking for the same.

The oil export-import and infra picture :

How India’s pipelines to Bangladesh, Nepal are changing oil trade dynamics

PM Modi, Sheikh Hasina inaugurate India-Bangladesh oil pipeline construction

LNG import to India from Bangladesh :

PM: LPG to be exported to India, not natural gas

Chronicles of many projects on going between India and Bangladesh along with the insistence on gas import :

‘Bangladesh should put pressure on India to export gas’

Bangladesh signs gas oil deal with India

As for Myanmar, or interest is exporting gas to them too. Once NE has a large integrated gas grid this can be done. Now Assam has a state grid so does Tripura, but there is not connect between them. The minority stake in the Myanmar's gas field is simply geo-politics. Remember OVL's stake in Vietnamese offshore oil ? Something like that. Myanmar doesn't produce enough gas to compete with Tripura and Assam, it make little economic sense to import from them. But denying China a stake is important.
Click to expand...
Thanks, great info. Wasn't aware of gas production in tripura tbh. The Myanmar india gas pipeline was stuck in then india Bangladesh politics. It was made out to be a great loss for india when China built the pipeline and took away all that. This is reassuring
 

PM Modi inaugurates 450 km Kochi-Mangaluru natural gas pipeline​

Prime Minister Narendra Modi Tuesday inaugurated the 450-km Kochi-Mangaluru natural gas pipeline built at a cost of Rs 3,000 crore via video conferencing. The pipeline will carry natural gas from Kochi in Kerala through Ernakulam, Thrissur, Palakkad, Malappuram, Kozhikode, Kannur and Kasargod districts to Mangaluru in Dakshina Kannada district of Karnataka.

Launching the project, the prime minister said that Natural gas pipeline network will be doubled in 5-6 years and CNG stations will be raised to 10,000 from current 1,500.”

“While on the one hand, natural gas pipeline network is being doubled to about 32,000 km in 5-6 years, on the other, work on the world’s biggest hybrid renewable plant combining wind and solar power has started in Gujarat,” said Modi.

The prime minister termed this day as an important milestone for both the people of Kerala and Karnataka as the two states are being connected by a natural gas pipeline. “It is an honour to dedicate the 450-km pipeline to the nation. This is an important day for India, especially for people of Karnataka and Kerala,” PM Modi added. Governors and Chief Ministers of Karnataka and Kerala, along with Union Minister for Petroleum and Natural Gas were present at the event.

Asserting that India under his government is seeing unprecedented work on highways, railway, metro, air, water, digital and gas connectivity which will aid economic development, Modi said, “I do not want to talk about the reasons behind the rate of India’s progress in previous decades. India cannot develop slowly now. In recent years, the country has increased its speed, scale, and scope of development.”

The government has an “integrated approach to energy planning. Our energy agenda is all-inclusive,” he said.

The prime minister also said that the emphasis is being laid on manufacturing biofuels as well as electric mobility. “In 10 years’ time, petrol will be doped with as much as 20 per cent of ethanol extracted from sugarcane and other agro products. This would help cut reliance on imports for meeting oil needs as well as reduce carbon emissions.”

“Alongside, the share of natural gas in the energy basket is being targeted to be raised to 15 per cent from the current 6.2 per cent. The pipeline grid will help improve clean energy access as well as also aid in the development of city gas projects he added.

Taking about the CNG stations in the country, the Prime Minsiter said 900 CNG stations were set up till 2014 after the advent of compressed natural gas as fuel for automobiles in the country around 1992. In the last six years, the number of CNG stations has gone up to 1,500 and the target is to take them to 10,000, he said.

“Also, 25 lakh households had piped natural gas connections for using the fuel for cooking purposes till 2014 which has risen to 72 lakh now. We are working to provide clean, affordable and sustainable energy,” he added.

Speaking at the virtual event from Bengaluru, Karnataka Chief Minister BS Yediyurappa said that the GAIL pipeline project connecting Kochi and Mangaluru will connect four lakh houses in the Dakshina Kannada and Udupi districts in Coastal Karnataka region providing natural gas.

Kerala Chief Minister Pinarayi Vijayan said that the GAIL pipeline project will be an enabler of growth for Kerala. “I am happy that our combined efforts have borne fruit, fulfilling the will of the people. The project will help to improve the quality of life of the people. Various departments including police and revenue joined hands to ensure smooth completion of the project,” said Pinarayi.

Governors of Karnataka and Kerala, Vajubhai Vala and Arif Mohammed Khan, Union Minister for Petroleum and Natural Gas, Dharmendra Pradhan was present in the virtual event.
indianexpress.com

PM Modi inaugurates 450 km Kochi-Mangaluru natural gas pipeline

PM Modi said, "In 10 years' time, petrol will be doped with as much as 20 per cent of ethanol extracted from sugarcane and other agro products. This would help cut reliance on imports for meeting oil needs as well as reduce carbon emissions."
indianexpress.com indianexpress.com
 
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