Indraprastha Gas looks at ways to hike revenue

Vol 13, PW 11 (05 Nov 09) Midstream & Downstream
     

Unable to find new markets, Indraprastha Gas is trying to increase revenue from its existing business.

PETROWATCH learns the Delhi-based gas retailer is hoping to increase sales by convincing hotels and factories to use gas to run their electricity-backup generators during the infamous and frequent power cuts that hit northern India. “This project is still at a preliminary stage,â€‌ says a senior IGL source.

“Details are being worked out.â€‌ Hotels and factories in Delhi mainly use liquid fuel like diesel and kerosene to run their electricity generators.

IGL wants to aggressively target these customers, we hear, believing it could increase sales by 10%. In turn IGL believes customers will be tempted to switch over because gas is more environmentally friendly than dirty fuels and, just as important, cheaper.

IGL has already begun discussions with its promoter companies Bharat Petroleum and GAIL, we learn, to secure more gas for this project. Separately, work is progressing well on 50 new CNG stations IGL is setting up in Delhi, hopefully in time for the Commonwealth Games in October next year.

IGL says physical construction at 18 of these new CNG stations is nearly complete and installation of equipment like compressors and dispensers will begin soon. “These 18 stations will start selling CNG from February next year,â€‌ adds IGL.

But IGL has still not managed to acquire land for the remaining 32 CNG stations, we learn. “We are in regular touch with the state government for land allotment,â€‌ we are told, “and have informed the chief minister.

We hope to get land for all 32 stations by December 2009.â€‌ IGL says it has already ordered â€کlong lead’ items like compressors and CNG dispensers, which take time to be delivered.

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