GAIL threatens GSPL domination of Gujarat
Gujarat State Petronet (GSPL) won't like it, but arch-rival GAIL is waking up to just how ripe the Gujarat gas market is.
GAIL wants a consultant to help it study the gas market in India's only state where gas measures 26% of the energy basket; nationally, the average is a dismal 6%. "GAIL wants this study to help it increase its share of the Gujarat gas market," says an industry source.
Three consultancy firms are competing in GAIL's tender for the Hiring of consultancy services for natural gas market development survey 2022 in Gujarat, floated on August 9 (2022). GAIL initially set an August 30 (2022) bid deadline, which was later extended to September 6 (2022).
On September 8 (2022), GAIL opened technical bids from CRISIL Risk and Infrastructure Solutions, Mott MacDonald and Bhopal-based Volson Buildcon. "We are doing a technical evaluation of these three bidders," confirms a GAIL source.
"By end-September, we hope to open the financial bids of those who pass the technical evaluation." In the tender, GAIL says it needs a consultant to conduct a market development survey to help it enlarge old gas markets and develop new ones on an immediate, medium and long-term basis.
"This study will help GAIL make better investment decisions and identify new projects," we hear. Whoever wins must assess gas demand from factories, businesses, homes and transport consumers for the next 25 years and determine gas demand in price bands from $5 to $25/mmbtu and above.
GAIL also wants the consultant to identify gas clusters and customer segments in the Saurashtra and Kutch regions in Phase 1 and the same for the rest of Gujarat in Phase 2. Also wanted are detailed GPS maps of industrial customers and clusters in a techno-economic feasibility study that GAIL can potentially use to upgrade its gas pipeline and infrastructure network.
Whoever wins must also survey the pipeline network of competitors, particularly GSPL, and include customer profiles and plans, as well as upcoming LNG terminals and pipelines operated by large customers.