MNGL wants to sell 1m cm/d gas by March 2020

Vol 22, PW 15 (16 May 19) Midstream & Downstream

GAIL-BPCL joint venture Maharashtra Natural Gas (MNGL) is confident it can increase sales volumes by up to 20% this fiscal to cross the 1m cm/d mark in the Pune and Pimpri-Chinchwad areas of Maharashtra.

MNGL, which appointed a new managing director on May 7 when GAIL chief general manager Supriyo Halder replaced AM Tambekar, currently retails 850,000 cm/d in these two cities, according to a senior company source. Of this 70% is CNG while 25% is consumed by factories and businesses as piped gas.

Another 5% is piped to homes for use as cooking gas. In this fiscal (April 1, 2019 to March 31, 2020) MNGL’s focus will be to connect shopping malls, hospitals, offices and other commercial customers in the Baner, Balewadi and Hinjewadi areas of Pune using a combined 1400-km steel and plastic pipeline network laid in 2018-19.

MNGL also aims to connect an additional 125,000 homes. But 90% of the connections will be in Pune and only 10% in Pimpri-Chinchwad.

That's because the company has shelved expansion plans in Pimpri-Chinchwad following a decision by local authorities to demand an exorbitant Rs16,000 ($230) to Rs18,000/metre ($260) for RoU permission to lay new pipelines. Any new homes connected in Pimpri-Chinchwad this fiscal will be supplied through existing pipelines.

In 2018-19, MNGL planned to connect 72,000 homes but only managed 66,000. In total the company supplies 170,000 homes with gas-on-tap.