India's largest gas transportation company GAIL has reconfigured its Rs 12,000 crore (US$1.8bn) Jagdishpur-Haldia gas pipeline project connecting Varanasi (Uttar Pradesh) to the Dhamra terminal (Odisha) in India. The connection to Dhamra extends the length of the project from 2,050 km to 2,500 km.
The 2,500 km long pipeline project will serve as the “Energy Highway” (“Urja Ganga”) of Eastern India, connecting Bihar, Jharkhand, West Bengal and Uttar Pradesh to the national gas grid. The gas pipeline will deliver 7.4 mcm/d (2.7 bcm/year) in a first phase and will be later raised to 16 mcm/d (5.8 bcm/year).
The construction of the first phase (755 km) worth Rs 3,200 crore (US$478m) started in July 2015 and is expected to connect Phulpur (Allahabad) to Dobhi (Gaya) in Bihar with spur lines to Barauni and Patna by December 2018.
In the second phase, a 1,200 km gas line is planned between Dobhi, Bokaro/Ranchi (Jharkhand) and Angul and Dharma (Odisha) at a cost of Rs 5,565 crore (US$831m). The third phase will lay 583 km of gas lines to Haldia at a cost of Rs 3,425 crore (US$511m).
The project was initially proposed nearly ten years ago but was frozen due to the lack of gas and customers. It was revived by the new government.