Indrapastha Gas Ltd is on track to add over 2 lakh new piped natural gas (PNG) connections this fiscal. This will be the highest number of piped gas connections disbursed by the gas retailer in a year.
“We will be closing the current financial year with the highest ever number of new connections added in a year. This year there will be 2.10 lakh new connections. Till now nearly 1.78 lakh new connections have been disbursed and we are adding 900-1,000 connections every day,” Indraprastha Gas MD ES Ranganathan told BusinessLine .
As of December 2018, IGL had 10.29 lakh residential consumers and 4,095 industrial or commercial customers, and the company reported a consumption of 403 million standard cubic meters of natural gas by its PNG consumers.
Under IGL’s current sales volume mix, Compressed Natural Gas (for vehicles) accounts for 75 per cent of the total while commercial and industrial units command 11 per cent. Sales to other city gas distribution companies account for 8 per cent and residential consumers, just 6 per cent.
But IGL has been assured allocation of domestic natural gas from the Centre to meet the entire needs of the CNG and PNG domestic segments.
The lower price of domestic gas makes the economics of switching to gas more attractive, driving growth in the domestic segments of CNG and PNG. On an average, domestically produced gas is sold at half the price of imported gas, or even lesser.
IGL has also formed a long-term contract for regasified LNG to meet the piped natural gas (industrial and commercial) demand. It is also buying short-term gas from the open market.
“On an average, every household consumes 0.34 kg of gas per day. The total incremental gas demand this year will be 60,000 cubic meters per day,” Ranganathan said.