No takers for IGL proposal to deliver CNG in â€کcascades'

Vol 11, PW 25 (01 May 08) Midstream & Downstream

Adani Energy and Haryana City Gas dismiss the offer by GAIL-BPCL joint venture Indraprastha Gas to supply their Faridabad and Gurgaon stations with CNG in cylinders.

“The (April 4) Supreme Court order is for the supply of (subsidised) gas through pipeline connectivity from GAIL,â€‌ we are told. “Not through â€کcascades’ (cylinders).

Still, we have not refused IGL but asked it to explain how it proposes to supply 250,000 cm/d for each city through â€کcascades’ We have a right to know this before we make arrangements. You cannot use cascades to fill up buses or cars!â€‌ Adani Energy and Haryana Gas were surprised at IGL’s offer “in the public interestâ€‌ to supply CNG in cascades.

“If IGL is so concerned about the â€کpublic interest’ why didn’t it supply CNG in cascades to these two cities even though they were allocated the gas long ago Why don’t they supply from cascades to Panipat and Sonepat (where IGL has distribution licences) and at least show us it worksâ€‌ Supplying â€کdaughter’ CNG stations through cascades from a â€کmother’ station is feasible only if the distance between the two is less than 6-km. Moreover, under present rules, “subsidised gas cannot be resold by one retailer to another retailer.

We will tell the Supreme Court that GAIL is the original owner of subsidised gas and that IGL should not be involved in proceedings.â€‌ Anger also centres on GAIL’s unwillingness to give copies of the network audit reports to Adani and Haryana Gas.

“An audit is meant to correct shortcomings,â€‌ we hear. “It is not a police investigation or an espionage operation.

Adani and Haryana Gas have a right to see copies of the full audit reports to correct any deficiencies.â€‌ Another source agrees.

“If there were any major deficiencies, GAIL would have let them be known to everybody to show that private retailers incompetent.â€‌ (See also: 7--Winning a court battle is not enough to secure gas)