Vadodara needs 300,000 cm/d R-LNG

Vol 17, PW 2 (22 Aug 13) Midstream & Downstream

GAIL could soon be pumping up to 300,000 cm/d of R-LNG to Vadodara in by the end of next year (2014).

PETROWATCH learns Vadodara Gas Company (VGC), a GAIL joint venture with the Vadodara Municipal Corporation (VMC), is planning the much awaited expansion of its CGD network by end-2013. VGC sells between 85,000 cm/d and 100,000 cm/d of mainly PMT gas at $5.65/mmbtu mixed with APM gas at $4.20/mmbtu.

But total Vadodara gas demand will hit 4.3m cm/d by 2020 and the only way to meet this is by switching to R-LNG. “No additional domestic gas is available,” says GAIL.

"R-LNG is the only hope." PMT supplies have fallen from 10.3m cm/d on May 1 this year to just 6.9m cm/d by July 31.

GAIL plans to source R-LNG for Vadodara from Dahej where it is the biggest off-taker. Still unclear is at what price.

VGC sells piped gas to over 75,000 households at Rs18/cubic metre ($0.29) and another 2500 businesses at Rs32/cubic metre ($0.52). But customers better prepare for a steep price rise with R-LNG.

GSPC Gas runs its CGD business solely on R-LNG and charges between Rs25.50/cm ($0.41) and Rs40/cm ($0.65) for piped gas to households. Adani Gas also relies 100% on R-LNG and charges Rs34/cm ($0.55).

VGC plans to invest Rs200cr ($33m) over the next four years.