Haryana Gas waiting for CGD green signal from court

Vol 11, PW 20 (21 Feb 08) Midstream & Downstream

If it weren’t fighting a Supreme Court battle with GAIL for access to the HBJ, private sector gas retailer Haryana City Gas would be ready to roll out piped gas and CNG fuel networks in the Delhi suburb of Gurgaon in Haryana and Bhiwadi in Rajasthan.

Armed with a NOC from Rajasthan state authorities, issued in 2006, Haryana Gas says it has already laid 15-km of pipelines of both 6-inch and 8-inch diameter in Bhiwadi to supply gas to ceramic tiles manufacturers, auto spare parts factories and brick kilns. No access to gas from the HBJ, however, means the Haryana Gas pipeline is lying idle.

Total gas demand for Bhiwadi, estimates the company, stands at an impressive 500,000 cm/d. “Meeting this demand won’t happen overnight,â€‌ the company tells us.

“A build-up period is required. It took Mahanagar Gas three years to build up a respectable industrial consumer base in Mumbai.

â€‌ Demand for CNG in Bhiwadi is also growing, prompting Haryana Gas to ask local authorities for land to set up two filling stations. In Gurgaon the company says it has put down 22-km of steel pipeline in its Phase-I programme, which focuses on setting up CNG filling stations in line with Supreme Court orders to reduce pollution from automobiles in and around Delhi, first issued in 2004.

But once again, no gas from the HBJ means the Gurgaon infrastructure is lying idle. CNG demand in Gurgaon is equivalent to 35,000 cm/d, believes Haryana Gas, and over the next four years it expects sales of piped gas to reach 1m cm/d, feeding the many apartment and office blocks under construction or already built.

Haryana Gas also has NOCs to supply CNG and piped gas to Neemrana in Rajasthan – site of the landmark Neemrana Fort tourist attraction. Work here should be starting in the next few months, with plans to set up two CNG filling stations for taxis carrying tourists to and from Delhi.

Little industrial activity is reported at Neemrana but Haryana Gas is banking on a plan by the Rajasthan Industrial Infrastructure Corporation to develop the town into an industrial hub with Japanese backing.