Saumya DSM relieved to get APM gas from GAIL

Vol 17, PW 9 (28 Nov 13) Midstream & Downstream

Saumya DSM will soon have no more excuses why it is failing as a gas retailer in Uttar Pradesh city Mathura.

Saumya has long complained that without cheap gas it is a loss-making business and has even tried but failed selling up to GAIL. But good news came on November 18 when the oil ministry told Saumya it has won a hard-to-come-by APM or subsidised gas allocation.

"The Supreme Court directed the ministry to allocate gas to us on October 18, 2013 and to begin supplies from December 3," confirms Saumya. GAIL has been charged with supplying the APM gas to Saumya, which needs 110,000 cm/d for Mathura.

"We doubt GAIL will supply the full amount," adds Saumya. "But whatever we get will help.

R-LNG is costing us more than $20/mmbtu." Saumya dragged the ministry to court early this year (2013) demanding an APM gas allocation.

"If GAIL Gas could get APM gas of more than 1m cm/d for Agra and Firozabad,” asks Saumya, why can’t we" Saumya stresses that Mathura also falls in the Taj Trapezium Zone, a special 10,400-sq km area around the Taj Mahal established by the Supreme Court in 1996 to protect the heritage monument from erosion because of coal and other heavy fuel emissions.