GSPC dedicates arm for gas distribution in Gujarat

To cover 20 cities in state beginning with Gandhinagar

Gujarat State Petroleum Corporation (GSPC) has turned its subsidiary, Fuel Management Group, into a piped natural gas distribution company "� GSPC Gas Co "� which will be distributing fuel in 20 cities across the state.

Saurabh Dalal, Gujarat minister for power and petrochemicals, confirmed that GSPC Gas (formerly Fuel Management Group) would start piped natural gas distribution in Gandhinagar. The pipeline laying work in Gandhinagar will be over by Diwali this year.

A massive pre-launch campaign has also been planned before the formal launch of gas distribution in the state capital.

Explaining the rational behind entering the gas distribution business, D J Pandian, managing director, GSPC, said the company already has strong presence in the oil and gas upstream business, in the background of its huge gas find in the Krishna-Godavari basin. Its pipeline arm, Gujarat State Petronet (GSPL), has established itself as a strong player with the creation of pipeline network in the south and the central regions of the state. The company is gradually spreading its network in the north and Saurashtra regions.

However, to become a completely integrated gas company, market penetration is required at the retail level and here GSPC Gas Co comes into the picture. The role of GSPC Gas Co would be complementary to that of GSPL. At locations where the GSPL network ends, the GSPC retail network will begin.

GSPC will be spending Rs 10 crore for the Gandhinagar project. For the remaining 19 cities, budget plans are under preparation, said Pandian.

GSPC will be focusing on the cities not covered by HPCL and the Adani group after getting a no objection certificate from the government of India.

GSPC Gas will also cater to the natural gas requirements of the industrial, commercial and residential sectors.

GSPC has had experience in city gas distribution with a project in Hazira, which would be of help for the Gandhinagar distribution project.

The company is already operating its first compressed natural gas (CNG) station at Gandhinagar. The station dispenses about 600 kg of CNG per day catering to the needs of 150 autorickshaws and 30 cars.