GSPC told to lay gas lines in district hubs

The Gujarat government has asked the Gujarat State Petroleum Corporation Ltd (GSPC) to provide a gas pipeline network to all district headquarters.

GSPC, a state government enterprise, is the nodal agency for oil and gas in Gujarat.

"GSPC received a letter from the state government last night, asking it to ensure that all district headquarters are connected to the gas grid. This is a move to ensure that gas is available on demand throughout the state," GSPC managing director D J Pandian said on Friday.

He said by 2007 gas would be made available on demand to any part of the state.

Speaking at EnConvergence, 2004, a seminar on energy organised by the Gujarat chapter of Confederation of Indian Industry, Pandian said while GSPL at present provide 8 million standard cubic metre of gas in the state, the demand is far more higher.

Gujarat State Petronet Ltd (GSPL), a subsidiary of GSPC, is laying a gas grid that will pass through all major parts of the state and will provide gas for industrial and domestic use.

Till date seven district headquarters of the state have been covered under the GSPL gas grid. These districts include Surat, Bharuch, Vadodara, Anand, Kheda, Ahmedabad and Gandhinagar.

Speaking to Business Standard, Pandian said, "We will draw up an action plan and ensure it is completed at the earliest."

Commenting on the future demand for gas in the state, Pandian said even if only the expansion plans of power projects were to be considered, the unmet demand of power plants from GSPC would be 23 lakh cubic metre of gas.

"There is a demand of 23 lakh cubic metre from power projects alone, and considering the demand from all industries and domestic users, the demand could be 50 million tonne per annum. Thus, there is a need for more gas and a third LNG terminal, apart from being helpful to meet the local demand, will serve as the gateway to northern India," Pandian said.

GSPL is involved in developing energy transportation infrastructure and connecting natural gas supply basins and LNG terminals to growing markets. The company's natural gas operations in Gujarat are aimed at leveraging integrated energy resources.

A proposed pipeline infrastructure of more than 2,200 km in Gujarat has been planned, of which 360 km are operational between Hazira and Kalol.

GSPL transports more than nine million metric standard cubic metre per day (MMSCMD) of gas, including three MMSCMD of LNG. The company has already made investments in excess of Rs 1,000 crore.