The 1,500 km Surat-Paradip natural gas pipeline will cover a stretch of 460 km in Orissa, passing through nine districts of the state including the economically backward districts of Bolangir, Sonepur and Nuapada.

The pipeline is to be laid by GAIL (India) at a cost of Rs 10,300 crore. The other districts to be covered by the pipeline include Bargarh, Sambalpur, Angul, Dhenkanal, Jajpur, Kendrapara and Jagatsinghpur. It will supply natural gas for industrial, commercial and domestic applications.

Earlier, the Orissa government had urged GAIL to make some changes in the pipeline's alignment so that it passes through the backward KBK (Kalahandi-Bolangir-Koraput) region. A joint venture agreement is to be signed between the state government and GAIL soon.

GAIL has already received approval from the gas regulator Petroleum & Natural Gas Regulatory Board (PGNRB) for the project.

Meanwhile, GAIL is also planning to set up an LNG terminal in the state at an investment of Rs 4,500 crore. The company has identified the ports of Paradip, Dhamra and Gopalpur as potential locations for establishment of the terminal.

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