Gujarat Gas Company Limited, a subsidiary of BG Group plc, has received an allocation of 0.60 mmscmd of KG D6 gas from the Government of India on a fallback basis.
Shaleen Sharma, Managing Director of Gujarat Gas, said, “Price and cost optimization along with higher supplies have enabled us to report strong profits for the quarter. We continue to explore options for procuring firm RLNG for longer term growth. Meanwhile, we have received an allocation of 0.60 mmscmd of KG D6 gas from the Government of India on a fallback basis and are in discussion with the suppliers and transporters to finalize agreements for flowing this gas in to our system.
The company's consolidated net sales for the first quarter ended 31 March 2010 were Rs 401.4 crore as compared to Rs 296.8 crore in the corresponding quarter of the previous year. The total volume of gas sold during the quarter was 291 mmscm compared to 232 mmscm in the corresponding period last year. The Profit after Tax (PAT) was Rs 62 crore as against to Rs 36.6 crore in the corresponding quarter in the previous year.
The growth in distribution volumes was mainly enabled through higher supplies of gas from indigenous sources as well as by procurement of short term RLNG. "While Panna-Mukta, Tapti gas supplied by GAIL continued to constitute the highest share of the sourcing portfolio, short term RLNG was purchased to supplement the short term shortfall," Sharma added.
Gujarat Gas currently distributes approximately 3.2 mmscmd of natural gas to about 2,80,000 industrial, commercial as well as domestic customers through a pipeline network of approximately 3300 kms and CNG to over 115,000 vehicles through 33 retail outlets.
"Industrial retail volumes of the company grew partly as gas supplies increased and also as new customers were commissioned. More than 5,700 vehicles were converted to CNG during the quarter, taking the total number of CNG vehicles in the company’s operational areas to more than 115,000. Two new CNG stations were added during the quarter," the release said.
