Gujarat Gas adds Amreli to its Gujarat network

Vol 19, PW 20 (16 Jun 16) Midstream & Downstream

With a population of just 1.5m people, Amreli in Gujarat sits near the Gir forest, home to the Asiatic lion and birthplace of India's richest man Dilip Shanghvi, owner of Sun Pharmaceuticals.

Undoubtedly GSPC group company Gujarat Gas hopes its plans to set up a gas network in the city will lead to a roaring success after the PNGRB granted authorisation on May 27 under the sixth gas licencing round. Gujarat Gas paid a performance bank guarantee of Rs44cr ($6m) for Amreli, its third geographical area in the Saurashtra region of Gujarat after Jamnagar and Bhavnagar.

Determined not to forfeit this hefty amount, Gujarat Gas must begin work fast to meet its commitment to lay 1800-inch km of steel pipeline across a 7477-sq km area and provide piped gas connections to 14,742 households over five years. "Work must begin within 270 days of the authorisation [by February 21, 2017]," says a PNGRB source.

"That shouldn't be a problem, Gujarat Gas is competent enough to meet its targets." In the first year Gujarat Gas must lay 360-inch km of pipeline; in each of the second and third years 540-inch km and in each of the fourth and fifth years 180 inch-km. Gujarat Gas must connect 2211 homes with piped gas in the first two years, 5160 in year-three, 2948 in year-four and 4423 in year-five.