Gujarat Gas to invest Rs 100 crore to set up CNG stations

The Gujarat Gas Company Ltd (GGCL), a subsidiary of British Gas, will invest Rs 100 crore over the next five years in Gujarat to set up compressed natural gas (CNG) stations in Ankleshwar, Surat and Bharuch.

GGCL has already invested Rs 300 crore in setting up pipeline and other infrastructure for the distribution of gas in the three cities.

"The company plans to invest in phases. In the first phase, the company will invest around Rs 10 crore to set up five CNG retail outlets in the three cities. The company has already two operational CNG outlets in Surat and Ankleshwar," said Manu Verma, general manager (commercial), GGCL.

"At present, we are waiting for the state government to come out with a comprehensive policy on CNG and will invest accordingly after considering the market conditions," he said.

GGCL has the permission to distribute gas, both CNG and piped natural gas (PNG), in Ankleshwar, Surat and Bharuch, while Gas Authority of India Ltd (GAIL) has been permitted to distribute CNG in Vadodara.

GSPCL has recently set up its mother CNG station at Ichhapur, in the outskirts of Surat, and the Adani Group has received a clearance from the Gujarat State Petroleum Corporation Ltd for CNG and PNG distribution in Ahmedabad and Vadodara.

At present, GGCL distributes more than 20 lakh scmd and transports more than 30 lakh scmd of gas through its 1,600 kms of pipeline to 1,40,166 domestic, 1,758 commercial, 443 industrial, and 1,347 CNG customers, in Ankleshwar, Surat, Bharuch and surrounding industrial estates.

Verma said GGCL has no threat from other CNG distribution companies as the companies need to make huge investments in similar infrastructure in the specified area.

However, the state government has already indicated that it will not encourage more than one player in CNG and PNG distribution in one city.

The department of energy and petrochemicals of Guajarat government is now working on formulating a CNG Act in co-ordination with the state transport department and environment department.