More gas for CGD companies as GAIL hikes supply

Vol 17, PW 26 (14 Aug 14) Midstream & Downstream

GAIL is sharply increasing domestic gas supplies to 32 retailers across India as the government readies to make CNG and piped gas its top priority in new gas allocation guidelines.

Among the winners of an August 1 (2014) amendment to new guidelines is Indraprastha Gas in Delhi with supplies raised from 2.79m cm/d to 2.85m cm/d; Mahanagar Gas in Mumbai from 1.87m cm/d to 2.06m cm/d; GSPC Gas from 833,000 cm/d to 899,000 cm/d; Adani Gas in Ahmedabad from 444,000 cm/d to 450,000 cm/d and MNGL in Pune from 204,000 cm/d to 240,000 cm/d. Other winners include Indraprastha Gas at Gautam Budh Nagar in Uttar Pradesh; HPCL in Ahmedabad; Adani Gas in Faridabad; Charotar Gas in Anand; GAIL Gas at Dewas; GSPC Gas and Aavantika Gas at Indore and Ujjain.

These seven will share an additional 110,000 cm/d available since August 1 following a third amendment to the guidelines announced on April 16 (2014). Among the biggest losers of the government shift from industry to CGD is Reliance, which faces a huge 893,000 cm/d cut to supplies for its refinery and petrochemicals plants in Gujarat.

Other losers include GAIL’s petrochemicals complex at Pata, which loses 581,000cm/d; Essar’s steel mill at Hazira (281,000cm/d); GSPC (273,000cm/d); IndianOil refineries at Mathura (440,000 cm/d) and Koyali (116,000 cm/d); Arvind Mills (50,000cm/d) Gujarat Fluorochemicals (21,000cm/d) and United Phosphorus (24,000cm/d).