News: 200 cities identified for gas distribution network

(BL 25/03/2007) Mumbai - GAIL has identified 200 cities across the country for supplying Piped Natural Gas (PNG) and Compressed Natural Gas (CNG). It would take about eight years and Rs 12,000-crore investment for laying the city gas distribution system, said Dr U.D. Choubey, Chairman and Managing Director, GAIL (India) Ltd.

Dr Choubey was addressing the media on Saturday in Mumbai. He said that the investment in the city gas distribution would be raised through joint ventures and public-private partnerships. About 20 million metric standard cubic metres of gas per day (MMSCMD) would be the requirement and this will enable about 16 crore people to avail themselves of PNG and CNG services.

PNG consumption by 2 crore households is expected to replace 16 crore LPG cylinders, and this could be utilised to for further penetration of domestic LPG to rural households, he said.

Capacity framework

GAIL's existing network of over 5,600 km of natural gas high-pressure trunk pipeline, with a capacity to carry about 123 MMSCMD of natural gas across the country, is being augmented. GAIL's Dahej Uran pipeline, Dabhol Panvel pipeline and Jagoti-Pithampur pipelines would be commissioned shortly.

Further, based on projected gas availability, GAIL has plans to lay new pipelines from Jagdishpur to Haldia, Kochi to Kanjirkkod to Mangalore, Dadri to Nangal, Chainsa to Hissar and Dabhol to Bangalore.

The Union Petroleum Minister, Murli Deora, who was also present at the media briefing, said a total of eight joint ventures have already been formed for city gas distribution. Foreign participation in joint ventures for city gas distribution is as welcome as participation from private operators in India, he said.

GAIL would have a 22.5 per cent stake in the distribution companies and the respective State Governments would have a 5 per cent stake, Deora said.