Gujarat Gas Company Ltd (GGCL) has said the price revision is due to shortage of indigenous gas and procurement of re-gassified liquefied natural gas (RLNG) at international prices.

“With the current supplies of gas from the Panna-Mukta and Tapti (PMT) fields decreasing by about 50 per cent of the original volumes at the start of 2008, GGCL is left with no other option but to procure more expensive RLNG for meeting the demands of its customers,” a company spokesman said.

RLNG is currently priced at two to three times the prevailing prices of indigenous gas available to GGCL, the official said.

The company procures gas from both indigenous (PMT fields) as well as imported sources (RLNG) to efficiently service its market.

Gujarat Gas currently caters to over 4.5 lakh customers across various segments covering domestic, CNG, commercial and industrial customer segments located in and around Surat, Bharuch and Ankleshwar in Gujarat.

Gas from indigenous sources in the company’s portfolio, which is mainly from the Panna-Mukta and Tapti (PMT) fields, is gradually declining.

On the other hand, the demand for natural gas is increasing consistently thereby widening the gap of demand-supply in its markets, company sources said.

While the company continuously seeks higher allocation of domestic gas, the proportion of RLNG is expected to increase significantly in the company’s portfolio over the next few years in the backdrop of declining availability of gas from indigenous sources.

Re-gassified liquefied natural gas will constitute close to 50 per cent of GGCL’s supply portfolio in comparison to less than 15 per cent in 2009, the spokesperson said.

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