More CNG stations planned for Pune by MNGL

Vol 13, PW 2 (02 Jul 09) Midstream & Downstream

Gas consumers in Pune will be heartened to know that on June 1 the Petroleum and Natural Gas Regulatory Board authorised Maharashtra Natural Gas to operate a gas retail business in Pune and the satellite twin towns of Pimpri and Chinchwad.

MNGL is a joint venture between GAIL and BPCL and will be setting up CNG stations and piped gas supply networks in Pune and the suburbs of Chakan, Talegaon and Hinjewadi. Within five years, MNGL hopes to complete a programme of domestic piped gas connections, pipelines and gas compression installation.

“In the first year we must provide 5000 piped gas connections to households and by the end of five years there should be 72,000 connections,â€‌ says MNGL. In 2006, the oil ministry allocated 400,000 cm/d subsidised gas to MNGL for its CGD business and the company set up its first CNG station in Pimpri-Chinchwad in November 2008.

MNGL currently has seven CNG stations in Pune and Pimpri-Chinchwad, selling a total 10,000 kg/day at Rs28/kg in Pimpri-Chinchwad and Rs28.25/kg in Pune. Four more CNG stations will be in operation next month.

“Demand for CNG is huge,â€‌ adds MNGL. “1200 auto-rickshaws have already been converted to CNG and 45,000 auto-rickshaws are waiting to be converted.

â€‌ To meet its CGD targets, MNGL has already laid a 30-km long steel pipeline from Chinchwad to Shivaji Nagar. MNGL has already started laying polyethylene pipes to carry gas from the steel pipeline to houses in Chinchwad.

“Our present allocation (of subsidised gas) will suffice for the next five years to supply CNG and domestic PNG customers.â€‌ MNGL has also signed MoUs with industrial and commercial customers around Pune to supply either R-LNG from Dahej or D6 gas.

“The Dahej to Uran pipeline and the pipeline from D6 meet at Kalyan and we can lay spur lines from there to industrial customers,â€‌ says MNGL. Once the gas sales agreements are signed, supplies should start by December.