Gujarat Gas eyes doubling current natural gas volume to cope up with demand

  • Feb 22, 2020
  • The Financial Express

India’s largest city gas distribution (CGD) player Gujarat Gas (GGL) is expecting to double its current natural gas volumes by the end of next fiscal (2020-21) to cope up with on-going expansion of gas distribution network as well as increasing demand of natural gas in industrial segment.

“Currently, GGL is distributing gas in Gujarat and some parts of Maharashtra. In the 10th CGD round announced by Petroleum and Natural Gas Regulatory Board (PNGRB), the company has won as many as six geographical areas (GA), comprising 17 cities in Punjab, Haryana, Madhya Pradesh and Rajasthan. As a result, GGL is going to become a pan-India company and it would require large volumes to meet the future demand,” said a senior official in the state government.

The Gujarat government-owned company has India’s largest customer base in residential, commercial and industrial segments with around 350 CNG stations catering to more than two lakh CNG vehicles per day, 13.55 lakh households (residential) and over 3,500 industrial customers. At present, GGL distributes approximately 8.5 mmscmd natural gas using 23,200 km of gas pipeline network.

Interestingly, almost 80% of sales of the company happens in India’s biggest ceramic cluster situated at Morbi in western Gujarat. According to the official, after the order of National Green Tribunal (NGT), many units in Morbi are in the process of converting from coal to gas. As a result, sales in Morbi jumped from 5.2 mmscmd in the third quarter of the current fiscal to almost 6 mmscmd in the fourth quarter, he said, adding that domestic demand for ceramic has also improved and it would reflect in gas consumption. According to the official, GGL is expecting implementation of NGT order from March 2020, which would further add nearly 7.5 mmscmd gas volumes in Morbi as well as other areas of Gujarat.

The state government is also encouraging industrial units across the state to use natural gas as fuel rather than coal due to environmental reasons. He added that the company is also in the process of creating a gas distribution network in new geographical areas.

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