The Hindu Business Line : Gujarat Gas supply for 5 more cities

GGCL, the largest retail gas distribution company in Gujarat, plans to set up piped natural gas networks in three cities outside the State, Mr B.S. Shantharaju, Managing Director, GGCL told Business Line.

"We have finished evaluation of three cities and are currently assessing prospects in two other cities outside Gujarat," Mr Shantharaju said.

The Rs 708-crore company will rely on GAIL India's proposed national gas grid for spreading its business to other cities, he said.

"Three years down the line, areas in the south of Gujarat (Maharashtra) would have been reached through the proposed common carrier pipeline network. The Hazira-Bijaipur-Jagdishpur pipeline will open up Central India to natural gas. We will be looking at the opportunities this will bring," Mr Shantharaju said.

The company has already applied for licence to set up city gas distribution networks in Valsad and Vapi in Gujarat. GGCL's strategy will be to focus on retail supplies instead of bulk sales to large customers, he said.

GGCL supplies gas to industrial, commercial and household customers across Surat, Bharuch, Ankleshwar and Jhagadia in Gujarat through its 1,800-km pipeline network. The company plans now to increase its focus on selling compressed natural gas.

It will invest up to Rs 60 crore in expanding its CNG network in Gujarat beginning with Surat, he said. GGCL plans to increase the number of CNG outlets from seven to 27 over the next two years.

The company, which sells 2.1 million standard cubic metres of gas per day, currently faces a gas supply shortfall of 0.2-0.3 mmscmpd. It is in talks with gas suppliers to meet the shortfall.

"Gas from Niko Resources will be available within a couple of months, as per our agreement. This should meet immediate requirements. We are also talking to one big gas supplier for additional needs as we expand our business," Mr Shantharaju said.

The company is also developing gas-usage applications for local industries using natural gas such as textiles and diamond cutting. It is also looking at entering the power sector by setting up a 100 MW power plant in Gujarat, he said.