New Delhi: Canadian investor Brookfield-led India Infrastructure Trust (InVIT) has agreed to buy billionaire Mukesh Ambani’s loss-making East-West gas pipeline for Rs 13,000 crore.
The InVIT will acquire 100 per cent equity interest in Pipeline Infrastructure Pvt Ltd, owner and operators of the pipeline that transports Reliance Industries Ltd’s eastern offshore KG-D6 gas to customers, according to a statement issued by Ambani’s flagship company.
After this, the existing pipeline usage agreement has been reworked to reduce capacity reserved for RIL gas to 33 million standard cubic metres per day from 56 mmscmd currently.
RIL will have to transport at least 22 mmscmd of gas through the pipeline at the revised tariff, failing which it will be liable to pay the differential amount to Pipeline Infrastructure, the statement said.
The East-West pipeline originates at Kakinada in Andhra Pradesh and travels 1,460-kilometres up to Bharuch in Gujarat. It commenced operations in 2009. with an original design capacity to transport 85 mmscmd of gas, including 21.25 mmscmd on common carrier basis.
PTI