PWC sees good demand for gas around Mumbai

Vol 9, PW 17 (01 Dec 05) People & Policy

Consultants Price Waterhouse Coopers forecast good demand for natural gas in the industrial hubs around Mumbai.

In its report, PWC says a natural gas transportation pipeline in and around the Mumbai region would be very viable, particularly the Talasari to Tarapur and Talasari to Uran sections. As for a gas pipeline to Pune, the cost of alternate fuel in Pune will determine feasibility.

PWC says gas demand in the Talasari to Tarapur region is between 0.4m and 0.75m cm/d. Demand in the Talasari to Uran section is the highest at 12m cm/d, while in the Pune to Uran section it is 1m cm/d.

Besides the above, PWC feels there could be probable demand from new proposed power stations. For instance, argues PWC, the Talasari to Tarapur section could see demand of 1m cm/d; Dahej to Uran could see demand of 2.5m cm/d; and the Pune to Uran section could have a demand of 1.5m cm/d.

PWC believes that if a 30-inch pipeline were laid the transmission tariff could be Rs0.94 for Talasari to Tarapur; Rs0.84 for Talasari to Uran and Rs1.72 per cubic metre for Uran to Pune. To complete its study, PWC sent questionnaires to representatives of the following industry associations: Kalyan Ambernath Manufacturers Association, Thane Small Scale Industrial Association, Additional Ambernath Manufacturers Association, MIDC Marol Industrial Association and Trans Thane Creek Industrial Association.

Responses have been encouraging and reveal, Strong indications of demand for natural gas and a willingness to convert to natural gas at competitive pricing. PWC reveals that responses to the questionnaire are still trickling in but some industrial associations had already conducted their own, independent, demand surveys.

PWC also met executives from present and potential gas suppliers Shell and Reliance. PriceWaterhouseCoopers was hired by MIDC to carry out a pre-feasibility study for laying and operating natural gas transportation pipeline in and around Mumbai region.