All smiles as Mahanagar Gas sales surge ahead
Mahanagar Gas (MGL) is patting itself on the back after achieving enviable piped gas connection figures in the fiscal ending March 31 (2024).
"MGL provided 320,125 new household piped gas connections in 2023-24," says an MGL source. "And with our subsidiary, Unison Enviro, we have hit 330,000."
In comparison, Adani-Total Gas added 116,00 new household piped gas connections in 2023-24, and Gujarat Gas added 187,000. MGL supplies piped gas and CNG in Mumbai, Thane and Raigad in Maharashtra and Unison Enviro-operated Ratnagiri, Latur and Osmanabad.
On February 1 (2024), MGL formally acquired 100% of Unison from shareholders Ashoka Buildcon (51%) and Morgan Stanley India Infrastructure (49%) in a Rs562.09cr ($67.5m) cash deal. Unison is now a wholly owned subsidiary of MGL after winning PNGRB approval for the acquisition on December 13 (2023).
However, rival gas retailers remain unimpressed by MGL’s achievements, arguing that it has the advantage of operating in densely populated areas of Mumbai and Thane. "There are a lot of high-rise buildings in these areas, and household connections can be provided fast," says a source.
In May 2023, MGL (51%) signed an MoU for a joint venture with Nagpur-based Baidyanath LNG (49%), which plans to set up six LNG stations, of which four will be set up in 2024-25. "We expect to commission one station (under the joint venture) next month (June 2024)," adds our company source.
In 2023, MGL also independently commissioned an LNG station at Savroli and is currently selling 4 t/d of LNG. "The station is conveniently located near Khopoli, just off the Mumbai-Pune expressway," we hear.
"Volumes are expected to pick up at Savroli this year as more LNG-fired vehicles take to the road." MGL believes LNG is suitable for large trucks and buses travelling long distances or making frequent roundtrips.
In general, 2023-24 was a good year for MGL. "We achieved our highest sales of 3.6m cm/d, an increase of 5.45%," says MGL.
Of this, CNG accounted for 2.54m cm/d. By contrast, daily average sales were 3.42m cm/d in 2022-23.