H-Energy seeks extension of gas pipeline to Contai.

H-Energy Pvt Ltd. (HEPL) has requested the Centre to extend the proposed 2,539-km Jagdishpur-Haldia and Bokaro-Dhamra pipeline (JHBDPL) by 80 km to evacuate gas from the company’s proposed LNG terminal off the Bengal coast. The pipeline project, which will connect vast areas of UP and the entire eastern India, proposes sourcing gas from as far afield as the west coast and the CBM fields of Reliance in MP.

H-Energy’s terminal is vital for both gas-starved Bengal and western Bangladesh. The company has the backing of the West Bengal government and the Kolkata Port Trust. However, evacuation remains an issue.

Last year, the company proposed a Contai-Paradip and Contai-Duttaphulia pipeline project, which was spiked by the downstream regulator, Petroleum and Natural Gas Regulatory Board, citing viability concerns. The issue is now pending before a dispute settlement tribunal.

The Contai-Duttaphulia leg is aimed at supplying power plants in Bangladesh. Armed with an approval from the Ministry of External Affairs, the company has already entered a preliminary agreement with a prospective customer in the neighbouring country.

Theoretically, H-Energy can set up a dedicated pipeline for the Bangladeshi customer. But the viability of such a project is doubtful.

In November, the downstream regulator denied granting monopoly rights to state-owned GAIL for developing the gas grid and distributing city gas in the region. However, the government is insisting for the same.

HBL