Saumya DSM finally arranges gas for Mathura

Vol 13, PW 18 (25 Feb 10) Exploration & Production

Things are looking up for Saumya DSM Infratech since we wrote about the company last August.

Finally the little-known company, incorporated in 2008, says it is making progress in setting up a gas network at Mathura in Uttar Pradesh, for which it won a license last May. PETROWATCH learns from company sources that the oil ministry allocated 20,000 cm/d gas to Saumya last December.

“This is enough for the first year of operations,â€‌ says a confident company source. A gas transportation agreement will be signed with GAIL, we learn, as soon as Saumya is told how much money it needs to deposit as bank guarantee.

Saumya will source gas from GAIL’s Dahej to Vijaipur pipeline at the SV-14 â€کtap-off’ point at Chhatta village, 30-km from Mathura. Saumya is constructing the Mathura city gate station just 300-metres from SV-14.

“Our city gate station should be ready by end-April,â€‌ we are told. Saumya also says it signed a MoU with Shell late last year to source R-LNG from the Hazira LNG terminal.

“Gas allocated by the government can be sold only as CNG,â€‌ says Saumya. “We need to source â€کspot’ gas from Shell, Reliance and others to sell to factories and commercial establishments like hotels and restaurants.

â€‌ Chronic electricity shortages plague Mathura, giving Saumya a ready market; the company claims factories, hotels and restaurants are lining up and willing to pay any price for gas to fuel their power generators. By April this year, Saumya says it will have two CNG stations ready to start selling CNG.

“Last September we placed orders for long-lead items like compressors,â€‌ adds Saumya. “Another two CNG stations are planned for which we arebuying more land.

â€‌ Saumya has begun laying a 33-km steel pipeline from its city gate station to one of the upcoming CNG stations having a dispensing capacity of 750kg/hour and says it has also begun signing up 1500 households to receive piped gas supplies.