State-owned GAIL (India) Ltd plans to invest Rs 180 billion ($4.18 billion) over the next few years in five new pipeline projects and upgradation of the existing trunk lines to take the fuel from gas fields and import locations to consumers.

Chairman U.D. Choubey said the country’s largest natural gas distributor, will spend the money to add 5,000 km to its existing network and the investment would boost company’s revenues from pipeline transportation to Rs 58 billion ($1.34 billion) by 2011-12 from Rs 20 billion ($465.1 million) currently.

The pipelines for which approval for EOI has been granted are: (1) Dadri – Bawana – Nangal pipeline, (2) Chainsa – Gurgaon – Jhajjhar – Hissar pipeline, (3) Jagdishpur – Haldia pipeline, (4) Dabhol – Bangalore pipeline and (5) Kochi – Kanjirkkod - Bangalore / Mangalore pipeline. The total length of these pipelines would be 3300 km.

In addition to these, GAIL will be laying 3 pipelines (within the existing ROU) to augment the capacities of Dahej – Vijaipur pipeline (610 km), Vijaipur – Dadri pipeline (505 km), Vijaipur – Auraiya – Jagdishpur pipeline (571 km).

These pipelines expected to be completed in two phases in the next 3-4 years is expected to increase the company's transportation capacity to 280 million cubic metres per day from 175 million cubic metres a day.

Choubey said GAIL had signed separate agreements with Reliance and ONGC for cooperation in the gas sector, including transportation of natural gas from Krishna Godavari and Mahanadi basin through an integrated pipeline network.

The natural gas availability in the country is set for a major change in the coming years with a substantial increase in the availability of natural gas following the recent discoveries in the country, specially on the east coast, namely, the KG and the Mahanadi basins.