Mahanagar Gas launches Raigad network in April

Vol 20, PW 13 (23 Mar 17) Midstream & Downstream

Once the capital of a Maratha kingdom ruled by warrior and local hero Shivaji, Raigad district in Maharashtra, with a population of 2m, will soon be ruled by Mahanagar Gas.

At least for its retail gas needs. GAIL-Shell joint venture Mahanagar Gas will launch its gas network in the region in April after a formal inauguration ceremony attended by oil minister Dharmendra Pradhan who will turn on the tap to begin piped gas supplies to 300 homes in Uran town, which derives its name from the Hindu goddess Uranavati.

A senior Mahanagar Gas source tells us in another two months the company will set up two CNG stations and connect another 700 homes in Uran. Mahanagar Gas plans to spend between Rs50cr ($7.6m) and Rs75cr ($11.5m) CAPEX in 2017-18 in the district which it won under the fourth retail gas licensing round in April 2015.

Also planned is a 7-km steel pipeline and a city gate station next to the Maharashtra Electricity Board power station in Uran. Until then, Raigad customers will be supplied gas from 'stationary cascades' or cylinders placed on land temporarily leased from the Uran Municipal Council.

This fiscal Mahanagar Gas has already laid 5-km polyethylene pipeline. Over the next two years, Mahanagar Gas plans to supply piped gas to 13,000 houses in Raigad.