India: HBJ capacity to double

The Gas Authority of India Ltd (GAIL) has unveiled plans to double the capacity of part of the 2,350km Hazira-Bijaipur-Jagdishpur (HBJ) pipeline, the main feed to the country's fertilizer plants. In 1998 the addition of new compressor stations upped capacity from 6.9 bcm per annum to 12.2 bcm per annum. Now plans are in hand to run a 1,100km parallel pipeline between Hazira and Bijaipur to bring capacity to 22 bcm per annum for that stretch, at a cost of Rs30bn ($690m). The plans will also include an 80km link to the proposed Dahej LNG terminal, which aims to import 5m tIa of LNG. Nevertheless, India is still facing a gas shortfall of up to 19 bcm per annum by 2005, according to GAIL's own estimates, even including greater exploitation of coalbed methane and up to 8m tIa of LNG imports, and assuming 4 bcm of additional indigenous gas capacity.