Indraprastha Gas extends the CNG revolution to Noida

Vol 10, PW 15 (16 Nov 06) Midstream & Downstream

Newcomers to India often marvel at the growing sight of auto rickshaws and taxis running on environmentally friendly Compressed Natural Gas (CNG).

One of the pioneers of the CNG revolution sweeping India is Indraprastha Gas (IGL) - a stock exchange listed joint venture between GAIL and Bharat Petroleum, set up nine years ago after prodding by the Supreme Court to introduce clean gas to Delhi, as it choked from growing pollution. Since its creation IGL has begun looking beyond the borders of the national capital, beginning with one of Delhis fastest growing suburbs in neighbouring Uttar Pradesh: Greater Noida.

PETROWATCH learns IGL is planning to set up five CNG stations in Greater Noida, following construction of a 15-km, eight-inch pipeline grid expected to be complete by June or July next year. Two of the CNG stations will be mother stations selling 5000 kg/day and three will be daughter stations.

All local approvals have been received and work is set to begin. Piped Natural Gas supplies to households will begin in another two months and IGL expects to complete the whole City Gas Distribution network in another 15 months.

Last year, IGL carried out an in-house market survey of Greater Noida and the neighbouring suburb of Ghaziabad that revealed modest but growing gas demand of 100,000 cm/d for both suburbs. As ever, plans to expand the reach of CNG and PNG in India are constrained by the lack of gas, be it locally produced natural gas or imported and regassified LNG.

But IGL is relaxed; confident it will easily find gas one year from now. We wont have any problems sourcing gas, reveals a company source.

Both our promoters are also promoters of Petronet-LNG. Our competitors do not have this advantage.

They will have problems sourcing gas. Other than Greater Noida and Ghaziabad, IGL plans to set up CGD networks in Sonepat and Panipat in Haryana and is expecting a Project Feasibility Report for both cities in three months.

Initial plans are to set up one mother CNG station and two daughter booster stations in each city.

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