IGL set to begin CNG and piped gas supply to Noida

Vol 11, PW 20 (21 Feb 08) Midstream & Downstream

Delhi-based gas retailer Indraprastha gas is poised to begin supplying CNG and piped natural gas to the suburb of Noida, east of the national capital.

By March this year IGL plans to commission its first â€کmother’ CNG filling station in Noida, meeting the target set by local authorities when they issued IGL a No Objection Certificate (NOC) in August last year - blocking the ambitions of rival gas retailer Gujarat-based Adani Energy. “Physical construction has already started and work is almost 30% complete,â€‌ confirms IGL.

“Along with land for the CNG station, Noida authorities have also allotted land for a proposed City Gate Station at GAIL's tap off point on the HBJ.â€‌ IGL reports solid backing from UP state officials, particularly the CEO of Noida, Mohinder Singh.

All stress they want to see the CNG â€کmother’ station open by March and piped gas flowing to industrial and commercial customers as soon as possible. Sourcing gas shouldn’t be a problem for IGL, a part-listed joint venture between state-owned GAIL and Mumbai-based refiner Bharat Petroleum: both have assured access to steady supplies of cheap R-LNG from Dahej.

On September 27 last year, the oil ministry sanctioned the supply of 200,000 cm/d to IGL for its CNG and piped gas business in Noida. But for gas to flow, Noida needs a new City Gate Station.

This shouldn’t take long, given that IGL, we learn, has already sent GAIL a cheque for Rs4cr ($1m) to build one. “GAIL will install the station,â€‌ reveals a source.

“Orders have been placed for all the equipment needed to build a City Gate Station.â€‌ Work on a 15-km spur from the HBJ to the City Gate Station and on to the â€کmother’ CNG station is on schedule, with 10-km already laid.

Last December, IGL completed the final element of the paperwork jigsaw allowing gas to flow from the HBJ to Noida when it signed a Gas Transmission Agreement with parent company GAIL.