Green Gas delays Lucknow and Agra piped gas

Vol 13, PW 15 (14 Jan 10) Midstream & Downstream

Green Gas has pushed back to March plans to begin selling piped gas in Lucknow and Agra.

Earlier plans were for the Lucknow-based joint venture between IndianOil and GAIL to begin selling piped gas to these two cities by the end of last year. But Green Gas blames the delay on the Petroleum & Natural Gas Regulatory Board, which must ratify its authorisation to sell piped gas in Lucknow.

Company sources also blame rival Adani Energy. “Adani has laid pipelines in Lucknow without government authorisation,â€‌ claims Green Gas.

“Because of this the Board is delaying ratification of our Lucknow authorisation.â€‌ Green Gas stresses that it received approval for piped gas sales in Agra around four months ago and is determined to start supplies by March, with or without Board approval for Lucknow.

“We already have authorisation from the government,â€‌ adds Green Gas. “The Board cannot stop us!â€‌ Another source confirms Green Gas is registering customers in Lucknow and Agra and should start supplies by the end of this fiscal.

But he refused to divulge the quantity of supplies. Among its new piped gas customers are two food product factories in Lucknow’s Sarojini Nagar district: Kalory Foods, which makes bread; and Surya Foods, which manufactures biscuits.

Green Gas also hopes to connect 5000 households in Lucknow and 6000 in Agra to its piped gas network by March next year. “As for commercial establishments such as restaurants and hotels,â€‌ we hear, “they will be connected on a case by case basis if they fall within the area covered by our household pipeline networks.

â€‌ Unclear is if GAIL will continue to supply 40,000 cm/d Dahej R-LNG from a contract signed in 2007. That depends if the government keeps its promise made on October 23 last year to supply a replacement 40,000 cm/d subsidised gas.