Gas for Faridabad also thanks to Supreme Court

Vol 12, PW 9 (18 Sep 08) Midstream & Downstream

Faridabad - another Delhi suburb - will also benefit from the Supreme Court’s October 12 deadline to the oil ministry.

“GAIL is seriously trying to meet the (Supreme Court) deadline,â€‌ confirms a source at private gas retailer Adani Energy, whose CGD network in Faridabad is idle for lack of connectivity to the GAIL gas transmission pipeline. “All the drawings are finished and contractors have been asked to be ready.

â€‌ PETROWATCH learns Adani Energy has already laid 48-km of steel pipeline of varying diameters and 110-km of polyethylene pipeline in Faridabad in preparation for the expected connectivity to the GAIL trunk pipeline at GAIL’s Chainsa terminal, about 300 metres away from its own pipeline, and close to the factory of India’s largest carmaker, Maruti-Suzuki. Adani says it has bought the required lengths of pipe for the connectivity and, “informally we’ve carried out a joint inspection with GAIL of the site.

â€‌ By October 15, or latest by October 20, says Adani, gas should start flowing to Faridabad, for which 250,000 cm/d subsidised gas has been set aside for sale as CNG and piped gas to households. “Two of our CNG stations are ready to receive gas,â€‌ we hear.

“One at the Haryana Roadways depot and the other in Sector 24.â€‌ Another two CNG stations will be operational by December this year and January next year, while four more will be set up in 2009-10.

Adani plans to register household PNG customers, beginning with Sectors 15, 16 and 17, where pipelines have already been laid, starting in November. Expectations are that the 250,000 cm/d of subsidised gas meant for Faridabad will be sold as CNG within a year of first supplies.

“But we’ll need additional gas a year later,â€‌ says Adani. “There is huge pent up demand.

â€‌ Adani is also looking to sell R-LNG from Dahej at market prices to commercial and industrial establishments. By January next year Dahej will have doubled capacity to 10m t/y and might have some surplus to sell.

“We are open to buying from Shell also,â€‌ adds Adani.