Daman and Diu on GSPC Gas expansion radar

Vol 15, PW 9 (03 Nov 11) Midstream & Downstream

You’d be tempted to think it’s unwise for a retail gas player to depend solely on expensive R-LNG, but GSPC Gas proves otherwise.

Figures correct on October 2 tell us the GSPC retail gas subsidiary is selling 4m cm/d to factories, households and businesses in Gujarat, making it India’s largest CGD operator in terms of sales volumes. “Almost all this gas is R-LNG sourced from parent GSPC,” confirms a source.

GSPC Gas, he adds, does not receive cheap D6 gas or subsidised ONGC gas at $4.20/mmbtu, unlike Delhi-based Indraprastha Gas, Mumbai-based Mahanagar Gas or Indore-based Aavantika Gas. Instead, it sources R-LNG from Petronet-LNG’s Dahej LNG terminal in Gujarat to supply over 180 towns and villages across the western Indian state.

GSPC Gas is currently selling piped gas to 1355 factories of which 400 are in south Gujarat, 680 are in western Gujarat, 175 are in the state’s northern Saurashtra region and 75 are in central Gujarat. GSPC next plans to set up city gas networks in two federally-governed states or ‘union territories’ just south of Gujarat: Dadra and Nagar Haveli; and Daman and Diu.

Both are former Portuguese colonies that merged with India in 1961 and offer a good gas market with a large number of factories. “Dadra-Nagar Haveli and Daman city are not far from (the industrial city of) Vapi so we could easily supply gas there too,” adds GSPC.

These areas are also popular with tourists from across the border, seeking a welcome break from Gujarat’s draconian laws prohibiting alcohol sales. “Liquor flows freely in Dadra-Nagar Haveli and Daman,” we learn.

“Gujarat residents with ‘parched throats’ head there at the first opportunity.” Still, most of Dadra and Nagar Haveli’s economy is founded on manufacturing, as taxes in the state are relatively low.