Unsatisfied gas demand is key to Maharashtra plans

Vol 9, PW 19 (12 Jan 06) Midstream & Downstream

Maharashtra is Indias most industrialised state and like Gujarat, faces an acute shortage of gas.

Only industries in and around Mumbai receive gas. But supplies are from ONGCs fast-depleting Bombay High, Neelam and Heera fields: shortages are grudgingly accepted as a fact of life.

Until regassified LNG from Gujarat comes through GAILs proposed Dahej to Uran pipeline and Gujarat Petronets proposed pipeline to Talasari the situation will remain dire. Promises of additional gas to meet unsatisfied demand lie behind Maharashtras decision to take the bold step of setting up its own gas transmission and distribution company, similar to Gujarat Petronet.

According to a PWC report, unsatisfied demand in the industrialised belt between Mumbai and Pune is an estimated 14m cm/d. See below: Industry/sector Gas requirement Rashtriya Chemicals and Fertilisers 2.5m cm/d Maharashtra State Electricity Board 1.5m cm/d Tata Power 1.5m cm/d Vikram Ispat 400,000 cm/d Indian Ispat 1m cm/d Mahanagar Gas 500,000 cm/d HR Johnson, Hindustan Petroleum, etc 500,000 cm/d Reliance Industries, Patalganga 400,000 cm/d Small industries 400,000 cm/d Crude oil refineries (after one year) 1m cm/d Industries in Thane-Belapur, Kalwa, Taloja 1m cm/d Pune (industrial and commercial users) 1m cm/d ONGC, GAIL (LPG extraction, internal use) 2m cm/d Industries in Tarapur 700,000 cm/d Total 14.4m cm/d