Adani hunts for gas to drive Ahmedabad expansion
Adani is desperate for cheap local gas to drive its Ahmedabad expansion, going as far as Rajasthan to ask Cairn.
Last month (April) Adani finalised plans to set up five new CNG stations by December this year to add to 45 it has already. Adani wants to poach customers by setting up its new stations near rival HPCL's stations.
"We'll increase sales,” says an Adani source, “by tapping new areas.” Adani will set up CNG dispensers at two IndianOil petrol stations: one at Ahmedabad Airport, the other at Naroda.
Two more are planned at BPCL stations and one with Essar. Last month (April) Adani visited Joshi Technologies to ask for gas from the Dholka field, producing 65,000 cm/d.
But Joshi refused. "Our existing customers take all our gas," says Joshi.
“There is no surplus.” Adani has bid in ONGC’s tender for gas from Gamij, expected to produce 21,000 cm/d, and last month even visited Cairn to explore supplies from Rageshwari, where one well produces 25,000 cm/d and four others around 5000-10,000 cm/d each.
Hopes that BSE-listed Interlink Petroleum might prove the saviour soared on January 2, 2013 when Adani signed a contract to receive 5000 cm/d for five years. But last month (April) Adani dismantled its Rs1.25cr ($250,000) gas compressor at the Baola gasfield after the Baola#1 well produced for just 10 days before pressure dropped.