MGL draws up plans for Raigad CGD network

Vol 19, PW 1 (10 Sep 15) Midstream & Downstream

Mumbai-based gas retailer Mahanagar Gas (MGL) is upbeat about its proposed retail gas network in Maharashtra's upcoming Raigad industrial region, which it believes has as much gas demand as Mumbai.

GAIL and BG joint venture MGL received PNGRB authorisation for Raigad on April 1 and must complete financial closure within 180 days – by end-September. MGL sources are confident it will achieve this and says it will spend Rs50cr ($8.3m) this fiscal on pipeline route surveys and demand estimates from clusters of potential industrial and household customers.

“We’ve begun compiling demand numbers,” he says. “Raigad (just across Mumbai harbour) fits well with our old license for Mumbai and Thane urban.

Industrialisation and urbanisation is happening in Raigad.” MGL will focus on the resort town of Alibaug, 100-km south of Mumbai, the industrial towns of Uran and Patalganga, and Jawaharlal Nehru Port.

Within five years, MGL estimates Raigad gas demand will be at least 1m cm/d. MGL is also betting on increased gas demand from a proposed international airport at Navi Mumbai and a proposed 22-km Trans Harbour bridge between Mumbai and Navi Mumbai, scheduled for completion by 2019 but likely to be delayed.

“Once the bridge is in place, areas on the mainland will develop and gas demand will match Mumbai,” says MGL. “New townships and industrial clusters are also planned near the airport.