The Hindu Business Line : BGL to set up CNG, LPG stations in AP

BHAGYANAGAR Gas Ltd (BGL), a joint venture of GAIL (India) and Hindustan Petroleum Corporation, will invest Rs 261 crore to set up compressed natural gas (CNG) and auto liquefied petroleum gas (LPG) stations in Tirupati, Hyderabad, Vijayawada and other parts of Andhra Pradesh in three years.

Gas distribution networks in Hyderabad, Secunderabad and Vijayawada are also being set up, said BGL's Managing Director, Mr C. N. Trivedi.

BGL's roll-out plan for Hyderabad and Secunderabad during the first three-year phase includes the setting up of two city gate stations, a 45-km-long steel grid line for gas transportation, three CNG mother stations with two compressors each, three CNG online stations, five CNG online bus stations, 14 CNG daughter stations (mounted on a truck) and 12 auto LPG stations at aninvestment of Rs 195 crore.

In Vijayawada, BGL plans to set up a city gas gate station, a 3-km-long steel grid line, a CNG mother station with two compressors, four CNG online stations, five CNG daughter stations and district regulator stations at a cost of Rs 57 crore.

There are plans to set up three auto LPG dispensing stations at Tirupati and four in Visakhapatnam at an investment of Rs 9 crore. Mr Trivedi said that the first ever stand-alone auto LPG outlet by BGL was commissioned in Tirupati on June 22, 2004. The outlet is situated at the foothill of Tirumala spread over 1,600 square meters and the land has been provided by Tirumala Tirupati Devesthanams (TTD) to BGL on lease.

To popularise the use of auto LPG, BGL has converted two-transport vehicles of TTD to LPG free of cost. TTD has also entered into an agreement with BGL to convert as many vehicles as possible to LPG to retain the temple town's pollution-free tag.

GAIL has a 728-km pipeline network in the State. It is sourcing 7-mmscmd gas from ONGC and Cairn Energy in the Kirshna Godavari (KG) Basin. GAIL's major gas consumers in KG Basin are fertiliser and power producers, including the AP Gas Power Corporation, Lanco, GVK, BSES (Reliance Energy), Spectrum Power Generation and Nagarjuna Fertilizers.

GAIL has already received an approval from the Ministry of Petroleum and Natural Gas for marketing domestic LPG to increase its penetration in the country from April 1, 2006. The company is setting up a LPG marketing network in three main segments — domestic packed, commercial packed and industrial bulk — in semi-urban and rural markets.

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