Gujarat Gas focus on Dadra and Nagar Haveli

Vol 19, PW 10 (28 Jan 16) Midstream & Downstream

Gujarat Gas has begun work to set up its first retail gas venture outside Gujarat in the picturesque former Portuguese colony of Dadra and Nagar Haveli.

Member of Parliament Natubhai Patel performed the ground-breaking ceremony for the Rs222cr ($33m) city gas project at Atthal village on January 15. Apparently this date was selected as the period before January 14 is considered inauspicious.

Gujarat Gas will cover the Naroli, Dadra, Silvassa, Samarvani, Masat and Rakholi areas in the first two years and the rest of the 493-sq km union territory in five years. Under the MWP (Minimum Work Programme) to be completed in the first five years of exclusivity, Gujarat Gas must lay 320.45 inch-km of pipeline network and connect 3823 households with piped gas.

“We’re hoping to exceed both these targets,” Gujarat Gas tells this report. “Also we’ll set up CNG stations and supply gas to local factories.

” At stake is a performance bond of Rs298cr ($43.91m) taken by the PNGRB to ensure the timely completion of the project. Under its licence Gujarat Gas has won 300 months of network exclusivity till April 1, 2040 and 60 months of marketing exclusivity till April 1, 2020.

Gas demand is expected mainly from more than 2000 factories in the union territory, producing mostly different types of textiles, plastics, pharmaceuticals, electronics, chemicals and engineering items.