Haryana City Gas challenges GAIL in Bhiwadi

Vol 15, PW 25 (28 Jun 12) Midstream & Downstream

Optimism is admirable, but Haryana City Gas better be realistic too.

Gurgaon-headquartered Haryana Gas thinks its former suitor and rival GAIL will let it encroach on to its territory without a fight. The territory in question is Bhiwadi in Rajasthan, home to the popular Neemrana Fort hotel and tourist attraction, with a population of more than 100,000 people.

Haryana Gas has no authorisation to build a CGD network but is nonetheless approaching industrial customers in Bhiwadi. “Our management says we will get authorisation soon,” says a company source, from its Bhiwadi office.

Haryana Gas, he adds, received a No objection Certificate from Rajasthan authorities in 2006 but admits this is yet to be recognised by the gas regulator in Delhi. GAIL meanwhile is already selling piped gas to 11 factories in Bhiwadi.

But Haryana Gas says GAIL should learn to share. After all, says a source, gas demand in the city is an impressive 200,000 cm/d.

Haryana Gas suggests GAIL could leave it the smaller customers and concentrate only on large customers like motorcycle manufacturer HeroMotoCorp. A happy fantasy perhaps, but plausible, says Haryana Gas.

“We have been approached by the Bhiwadi Manufacturers Association (an industry lobby group),” he adds. “They have 150 companies and always ask when we can begin gas supplies.

” GAIL is selling up to 15,000 cm/d to small factories like steel producer Uttam Strips and aluminium product manufacturer Mahavir Aluminium as well as to larger customers like ceramic tiles manufacturer Kajaria Ceramics and French company Saint-Gobain Glass. Haryana Gas opened an office at Bhiwadi last year and has constructed a 30-km polyethylene or plastic pipeline, originating from GAIL’s receiving station at nearby Chopanki village.