IOC-Adani to sell gas in Chandigarh from May

Vol 19, PW 13 (10 Mar 16) Midstream & Downstream

IndianOil Adani Gas (IOAGPL) is preparing to finally begin selling gas in the union territory of Chandigarh from May.

This Adani and IndianOil joint venture had won the licence to set up a retail gas network in the city on May 8, 2013 and had committed to lay a 1400-inch km pipeline and sign up 50,000 customers in the first year. It has completed laying over 100-km steel pipeline with 12-inch and 18-inch diameters.

"We hired five contractors to lay the steel pipelines," says a source at the joint venture. He adds the company has also hired four contractors to lay MDPE or plastic pipelines.

He explains working in a union territory, which is ruled by the central government, is challenging. "Chandigarh has very good infrastructure in place," he says.

"But getting permission to work from the respective authorities takes time." By March 2017, the joint venture plans to begin selling CNG from six to eight stations. "We have identified land to build the CNG stations," he adds.

"Applications for the required clearances and drawings (of the CNG stations) have been submitted." All the CNG stations will be online or connected to gas pipelines. Local authorities have allocated land to set up new CNG stations but the company will also set up CNG dispensers at some IOC petrol stations.