Gas transmission hike in Gujarat

Vol 13, PW 9 (08 Oct 09) News in Brief

Gujarat State Petronet wants to increase transmission charges by 10% for gas transmitted along its 1100-km gas grid that criss-crosses the state.

“We are negotiating with our customers,â€‌ confirms a Gujarat Petronet source. “The hike will come into effect when talks conclude.

â€‌ PETROWATCH learns Gujarat Petronet wants to hike transmission charges by Rs1.98/mmbtu from the present Rs19.82/mmbtu to Rs21.80/mmbtu. Among the customers Gujarat Petronet will most likely be talking to are: NTPC, Reliance, Essar Steel, Essar Power, Gujarat Gas, Torrent Power, Adani Energy, KRIBHCO, Charotar Gas, Sabarmati Gas and Suzlon - all of whom received warning letters on October 6 about the imminent 10% hike.

Gujarat Petronet saw a big dip in gas transmission volumes in the six-month period from October to March 2008, with volumes dropping to 12.8m cm/d. But with the arrival of D6 gas in April this year, gas traffic volumes have almost doubled to 25.5m cm/d.

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