RIL's Gas Pipeline Co. to Lease 25% Space

India's Reliance Gas Transportation Infrastructure Limited (RGTIL) will lease out 25 percent of space on its East-West Gas Pipeline to third parties.

This pipeline, with a common capacity of 21.25 mmscmd, ferries natural gas found in Reliance Industries Limited (RIL)'s KG-D6 basins from Kakinada in Andhra Pradesh to Bharuch in Gujarat. Common carrier capacity is the capacity available to third parties for hire in an infrastructure project.

Out of this 85 mmscmd, 21.25 mmscmd capacity will be available for third parties. RGTIL will be entitled to get Rs. 15 ($0.28) per million British thermal unit to Rs.60.94 ($1.12) per mmBtu transportation tariff for varying length of distance.

A prior approval by RGTIL must be taken from the oil regulator for creation of any lien, charge or hypothecation on the pipeline to secure finances for the project. It has to provide all the details regarding the usage of funds too. In case of raising funds from any financial institutions, the board should be informed within a week from the date of funds sanctioned.