Gujarat in CNG supply talks with 4 firms

It is also learnt that the oil firms have shown interest in taking part in the proposed mass CNG distribution network planned by the state government.

In September the state government had signed a memorandum of understanding with the Hindustan Petroleum Corporation Ltd (HPCL) to set up CNG refuelling systems at the corporation's petrol pumps.

The pact was signed through the Gujarat State Petroleum Corporation Ltd (GSPCL). At present the state energy and petroleum department is in talks with the Indian Oil Corporation Ltd (IOCL), Indo-Burma Petroleum (IBP) and Bharat Petroleum Corporation Ltd (BPCL) for installing CNG dispensers at their petrol pumps.

"Recently we have initiated talks with these oil PSUs for setting up CNG dispensers in the state as we are planning to introduce CNG as the main fuel for public transport by 2005. We will make sure that at least vehicles in major cities are CNG-powered. We need to have an extensive CNG distribution network which is at present being worked out. We have given licences to a few private and government companies in six major cities. With a tie-up with oil PSUs having huge petroleum retail network, we will be in a position to make sure easy availability of CNG across the state," said Saurabh Dalal, minister of state for energy and petrochemicals.

According to Dalal, initially CNG dispensers will be installed at petrol pumps which are covered under the gas grid implemented by Gujarat State Petronet Ltd (GSPL).

GSPL, a wholly owned subsidiary of GSPCL, is responsible for laying gas transportation pipeline in the state. GSPCL will be the main agent for selling gas in the state.

GSPL is at present laying gas pipeline across the state. The network will cover major cities and towns including industrial hubs such as Ankleshwar, Vapi and Morbi. The first phase involves a 525 km pipeline, of which 200 km has been completed and under operation.

These sections include Hazira-Mora (15 km), Amboli -Dahej (45 km), Bhadbhut-Paguthan (30 km), Mora-Utran (25 km), Suvali-Mora (7 km) Mora Interconnector (4 km) and Paguthan-Vadodara (64 km).

Another 200 km of pipeline including Vadodara-Ahmedabad-Kalol and Mora-Sajod, are scheduled for completion by the first quarter of 2004.

GSPL also has plans to extend its grid network to Saurashtra and Kutch regions. This will cover cities such as Rajkot, Morbi and Kutch.

GSPCL, which at present produces 3.5 million standard cubic metre of gas per day (mscmd) from its main field in Hazira, is expected to add another 2.5 mscmd of gas after the commissioning of its offshore platform, around six km away from Hazira shore in Surat district.

The offshore platform, which is at present being fabricated in a shipyard at Laemchbarg in Thailand, is expected to be sailed to Hazira in January.