The Hindu Business Line : IGL to lay pipeline for city gas distribution in Noida

Indraprastha Gas Ltd (IGL) is expected to start laying the pipeline network for city gas distribution (CGD) in Noida beginning September. The project was stalled midway in 2005 after the previous government in Uttar Pradesh allowed Gujarat Adani Energy Ltd (GAEL) to enter CGD business in Noida and denied requisite approvals to IGL for extending its network.

IGL, a joint venture between GAIL and BPCL, is also planning to approach the Haryana Government again, which had also over-ruled the decision of the Union government with regard to CGD in Faridabad. While IGL was nominated by the Centre, the Haryana Government issued no-objection to a proposal by Haryana City Gas Distribution Ltd (HCGDL).

“Both Noida and Faridabad are big enough markets and may even accommodate two operators, if need be. While the UP government has given us the due approvals recently, we will shortly meet the Chief Minister of Haryana with a similar request,” an IGL official told Business Line.

Moving fast

Clearly, while the petroleum regulator is yet to take a call on such situations created in the past, IGL is moving fast to capture the compressed natural gas (CNG) and piped natural gas (PNG) market in both Noida and Faridabad. The idea is that even if GAEL and HCGDL are finally allowed by the regulator, they may have to share the respective markets with IGL.

On their immediate investment plans in Noida, sources said that a route survey was already done for laying pipeline network avoiding the GAEL pipeline network.

“We are through with the route survey. We currently have one booster station and one CNG station in Noida. We are planning to set up two more booster stations and CNG stations latest by February 2008,” the IGL official said. “We expect to start laying the pipeline beginning mid September.” The cost estimates of the project are yet to be finalised.

It may be mentioned that GAEL has already invested a substantial sum for creating the pipeline network for CNG-PNG supplies at Noida.

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