Gujarat Gas hunting for 10 trucks to carry LNG

Vol 23, PW 2 (14 Nov 19) Midstream & Downstream

Gujarat Gas has joined the growing list of companies keen to transport LNG by truck to remote areas devoid of gas pipeline connectivity.

A company source confirms Gujarat Gas is in the market to hire up to 10 diesel-fired trucks with cryogenic tankers to transport LNG to six areas the company won in CGD-X across Punjab, Haryana, Rajasthan and Madhya Pradesh. Our source adds Gujarat Gas doesn’t want to wait around until pipeline networks are laid in these areas but wants to start gas supplies even as the pipeline plan is in progress - replicating a model used by GAIL which has been supplying LNG by road from DAHEJ to Bhubaneswar in Orissa since January 2019.

"This month (November) we began scouting for vehicles that can ferry both LNG and CNG," reports our Gujarat Gas source. "LNG by road is the only option; most of these areas do not have pipeline connectivity."

Still unclear is the eventual destination for the LNG when the LNG tankers are hired. In Punjab and Haryana, Gujarat Gas won a single area under CGD-X: Sirsa, Fatehabad and Mansa.

In Punjab it won two areas: Ferozpur, Faridkot and Sri Muktsar Sahib; and Hoshiarpur-Gurdaspur. In Madhya Pradesh it won a single area: Ujjain, Dewas and parts of Indore.

Across Madhya Pradesh and Rajasthan it won one area: Jhabua, Banswara, Ratlam and Dungarpur. In Rajasthan it won the Jalore and Sirohi area.

In the meantmie, Gujarat Gas also wants to hire 200 light and medium-sized commercial vehicles along with another 80 heavy commercial vehicles to begin the immediate transport of CNG in cylinders to all six areas. At four separate events in August and September Gujarat Gas agreed to set up CNG dispensers at HPCL fuel stations in these areas under a deal where HPCL receives commission for every kg of CNG sold. Longer term, Gujarat Gas plans to set up its own stand-alone CNG stations. Another company interested in supplying LNG by road is BPCL gas retailer Bharat Gas Resources, which is planning an L-CNG station at Shendra near Aurangabad in Maharashtra, won in CGD-IX. “Shendra is an industrial area on the proposed Delhi-Mumbai Industrial Corridor (DMIC),” confirms a BPCL source. “By late next year (2020) our L-CNG station is likely to be ready.” In September (2019) INOX commissioned a L-CNG station at Nagpur for Rawmatt Industries. Three months earlier Unison Enviro commissioned an L-CNG station at Lote Chiplun in Maharashtra's Ratnagiri district while GAIL commissioned a L-CNG station at Bhubaneshwar in January 2019.

Gujarat Gas hunting for 10 trucks to carry LNG

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