Gas sales soar in Pune as MNGL targets new areas
Gas sales in Pune are set to double again, according to Maharashtra Natural Gas (MNGL).
In the last fiscal (2013-14) MNGL revenue from Maharashtra’s second largest city after Mumbai rose sharply to Rs350cr ($58m) from Rs182cr ($30m) a year before as sales soared from 200,000 cm/d to 360,000 cm/d. MNGL believes 2014-15 revenue could be between Rs600cr ($100m) and Rs650cr on the back of gas sales of around 500,000 cm/d ($108m).
Yet MNGL wants to reduce its dependence on CNG, which accounted for 66% of revenue last year. “Rising CNG sales growth is not sustainable,” says a company source.
MNGL is seeking to reduce the ratio of CNG sales to between 55% and 60% of revenue and increase piped gas sales to households and businesses. Over the last two years it has increased household connections from 2300 to 13,000 and is targeting 50,000 homes by 2015.
MNGL has laid 125-km steel pipeline and 240-km of MDPE or plastic pipeline and plans to add 15-km of 6-inch diameter steel pipeline and 50-km of 4-inch diameter plastic pipeline by 2015. MNGL is also setting up CNG dispensers at 10 more petrol stations operated by state-owned refiners, adding to the 26 it has already.
Industrial customers include Mercedes Benz, Volkswagen, Mahindra & Mahindra, General Motors and tyre maker Bridgestone.