CGD: KEI-RSOS to begin selling CNG from May

Vol 18, PW 14 (12 Mar 15) Midstream & Downstream

In keeping with PM Narendra Modi’s drive to boost India’s gas retail sector KEI-RSOS is gearing up to set up 20 CNG stations across Andhra Pradesh.

PETROWATCH learns KEI-RSOS, a Rajahmundry-based luxury hotel operator, which also manages several ONGC marginal fields, is aiming to set up its first four by May. Gas will be sourced from four isolated ONGC wells for which KEI-RSOS has secured direct gas marketing rights.

A KEI-RSOS source tells us the four CNG stations will be set up at Akiveedu village, Ganepavaram town, Mandapeta town and Pamarru village, near the isolated wells. “ONGC will set up the wellhead installations,” says KEI-RSOS.

“We’ll lay a three-inch diameter, 3-km pipeline from each well to the nearest state highway where we’ll set up CNG stations.” KEI-RSOS adds it has direct gas marketing rights for two more isolated ONGC wells.

“These two wells are far off,” we hear. “We’re setting up wellhead compression stations at these wells and will begin transporting CNG in ‘tube-trailers’ (trucks) to (ceramics producer) RAK Ceramics after about four months.

” KEI-RSOS expects to spend around Rs3cr ($480,081) on each ‘stand-alone’ station from which it hopes to sell 4000-kg/day (5600 cm/d). Sixteen more CNG stations are planned in the next year by installing CNG dispensers at petrol stations operated by Bharat Petroleum, taking its total CNG sales to over 60,000 cm/d.