GAIL to open two CNG stations soon

The number of CNG stations in Varodara will be increase to four in a year time.

The gas giant, GAIL (India) Ltd had chalked out plans to invest in setting up more CNG station in Vadodara.

Speaking on the inaugaral function of CNG station in Varodara, U D Choubey, director (marketing) of GAIL, said, "We will add two more CNG station in Vadodara in by the end of this year."

After surveying the Vadodara market the company is in search of strategic location, informed Choubey.

Till now the city had only one CNG station and now GAIL has put up the second station.

The CNG station has an installed compression capacity of 1,425 SCMH with two compressors of 425 SCMH and 1,000 SCMH respectively.

The capacity of the station is 19,730 Kg per day and will cater to about 50 buses, 800 cars/taxis and 1,500 three-wheelers in the city.

Around 30,000 autorickshaws and 80,000 four wheeler ply daily in Varodara.

With the setting up of the present high capacity gas filling station, GAIL expects that more numbers of vehicle owners will be prompted to opt for conversion of their vehicles to CNG, informed a company press release.

GAIL had signed an MoU with HPCL in 2005 of gas projects for cities in Gujarat.

The process for the formation of Joint Venture Company (JVC) is in progress.

The city gas project in Gujarat will be further developed by JVC.

However, Vadodara has a strategic advantage over other cities of Gujarat due to its proximity to Ankleshwar, informed Choubey.

"The advantage of existing gas pipeline at Ankleshwar can be advantageous," said Choubey.

Currently GAIL supplies 15 million cubic meters (mcm) daily to Gujarat state, while it intents to raise the quantum of supply upto 23-24 mcm per day if the company is provided more gas from gas producers, informed Choubey.

The present capacity of gas pipeline of GAIL in Gujarat is 30 mcm per day.

The company has plans to increase it presence in the state by 2009. The gas company has its ongoing LPG plant expansion of Dahej terminal which will be increased upto 10 mcm by 2008-09, said Choubey.

When asked about the Morbi based ceramic industries gas demand, he said, "We know that gas supply to Morbi ceramic industries will help them to cut cost but it is difficult to reach them till we get more gas".

He informed that the company has already studied Surendranagar and the Morbi industrial belt.

However, the main cities that will be initially targeted by the JVC of GAIL and HPCL are Ahmedabad, Surendranagar, Rajkot and Vadodara depending upon availability of gas, informed the company's press release.

GAIL will extend its gas pipeline from Dahej to Uran (Maharastra) as the matter has been cleared by the board.

The entire project will be completed by 2007 with a capital investment of Rs 2,000 crore.

LPG plant expansion of Dahej terminal is now ongoing.

Initailly, it will be increased to 2.5 mcm and later it will be further increased to another 2.5 mcm.

The present capacity of the plant is 5 mcm which will be increased to 10 mcm after the completion of the expansion project. The entire expansion work is scheduled to be completed by 2008-09, said Choubey.

The data of the companies using gas is 42 per cent by power sectors, 36 per cent by fertilizer sectors, 4-5 per cent by spong iron sector, 11 per cent by other industries like glass, ceramic etc and 6 per cent for CNG & domestic usage, said Choubey.