Gujarat gas demand to shoot up by 2012

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

GSPC Gas has prepared a confidential market forecast illustrating the rapid growth of gas demand in Gujarat to 2012.

According to GSPC Gas, demand in Gujarat will shoot up by 46m cm/d in the next two years to reach 100m cm/d by 2012. GSPC Gas says factories are currently the largest consumers of gas at 21m cm/d and will continue to account for a major share of demand in 2012 with their requirement increasing by almost 15m cm/d.

Power generation will be the other major area to see growth in gas demand with several gas-fired power projects lined up - including the expansion of the 1157.50-MW Torrent power plant at Sugen to 4500-MW, the proposed 1500-MW gas-fired Torrent power station at Dahej and the proposed 2100-MW gas-fired station from Pipavav Power Company in Gujarat’s Amreli district. GSPC Gas also makes the following points: Gujarat has emerged as the largest gas consumer in India with present consumption of 58.7m cm/d gas (December 2009).

This is equal to about 37% of the total gas produced or imported in India! Rs8000cr ($1.7bn) is needed within the next seven to ten years to connect 2m households with piped gas in Gujarat. Total current Gujarat gas demand stands at 64m cm/d but Gujarat can secure 58.7m cm/d only from eight different sources.

Gujarat is also the only state with seven city gas players: GSPC Gas, Sabarmati Gas and Hindustan Petroleum, BG-owned Gujarat Gas, Adani Energy, Vadodara Municipal Corporation (a civic body) and Charotar Gas (a cooperative). Current Gujarat supplies Current Gujarat demand Source Supplies Sector Demand GSPC-Niko 0.7m cm/d Power 15m cm/d Cairn 0.8m cm/d Fertiliser 9m cm/d Niko 0.2m cm/d Distribution 7m cm/d Petronet-Dahej (LNG) 12m cm/d Factories 21m cm/d ONGC-GAIL 12m cm/d Refineries 12m cm/d Panna, Mukta & Tapti 8m cm/d Shell LNG 4m cm/d RelianceD6 21m cm/d TOTAL 58.7m cm/d TOTAL 64m cm/d