The Hindu Business Line : More Gujarat towns to join gas grid

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Morbi (Gujarat) Jan. 30 Pipavav, Mundra and Jamnagar would soon join the gas grid of Gujarat State Petronet Ltd (GSPL) whose Morbi Gas Receiving Terminal was inaugurated by the Gujarat Chief Minister, Mr Narendra Modi, here on Tuesday, heralding what he called transformation of the traditional fuel-based to gas-based economy in the State.

With this terminal, more than 250 ceramic industries in Morbi would switch over from coal gasifiers to natural gas as fuel. Of these, 45 had already signed a MoU to subscribe to the grid, and, of these, 22 were getting the supply GSPL officials said. Others were also joining up.

Mr Modi said these units would save Rs 2 crore per day due to the switchover and Morbi would get a cheaper and cleaner fuel for its most famous industry.

In Morbi, it is currently supplying one lakh standard cubic metres per day and can increase supply up to 30 lakh scmd.

Gujarat State Petroleum Corporation (GSPC), the parent company of GSPL, is currently getting its total gas supplies of 17 millionstandard cubic metres per day (mscmd), including from its Hajira facility (90,000 mscmd), Cairn (1,00,000), LNG Petronet (1,25,000), Shell (3,38,584) and Panna-Mukta-Tapti (5 million mscmd) associates. GSPL is currently transporting more than 18 mscmd of natural gas, out of 36 mmscmd, which is the total amount of gas transported by pipelines for consumption in Gujarat.

GSPL's customer profile comprises the top 25 corporates of Gujarat, both from public as well as private sector. These include GPEC, GSFC, GNFC, IFFCO, KRIBHCO, Arvind Mills, Adani Group, Torrent Group and the Essar Group.

Currently, it is supplying gas to 20 industrial units in the ceramic capital of India at Rs 18 per scmd whereas the cost of LPG is at least Rs 40 scmd.

Construction

GSPL has already commissioned 940 km of its gas grid in Gujarat while construction work is progress in 211 km. A total of 1,027 km is being planned additionally, which would make the gas grid 2,200-km long. The company is currently transporting over 16 mscmd of natural gas.

The entire project was completed at Rs 400 crore in 15 months' time.

Mr Modi said the grid would also supply gas for domestic use in the region, making its user family to save around Rs 150-200 per month. Vehicle-owners using gas as fuel would also be saving half the cost compared to petrol. The Government planned to bring cooking gas via pipelines to at least 10 lakh families in the near future, he added.

Gujarat has created an extensive gas pipeline network across the State, which is operated by GAIL, GGCL and GSPL. As a result, the State has emerged as the largest gas consuming State in the country. Approximately 35 per cent of the country's total natural gas is consumed in Gujarat

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