Sabarmati Gas to maintain 40% growth rate

Vol 14, PW 1 (01 Jul 10) Midstream & Downstream

Gujarat-based gas retailer Sabarmati Gas is gearing up to maintain a scorching 40% growth rate in this financial year to March 2011, as in the previous year.

PETROWATCH learns from a Sabarmati source that the BPCL-GSPC joint venture’s gas sales in the Mehsana, Gandhinagar and Sabarkantha districts add up to a total 650,000 cm/d and are expected to rise to 750,000 cm/d by next March. “We are growing aggressively,” says Sabarmati Gas.

“Demand is rising so fast we are finding it difficult to keep up.” In this fiscal Sabarmati Gas will spend Rs75cr ($16m) on CAPEX which will involve the laying of steel and plastic pipelines and the setting up of new CNG stations.

Sabarmati currently operates 13 CNG stations in Gujarat with plans to commission three more in the days ahead. Each station sells 65,000 kg/day of CNG on average and Sabarmati hopes to have 24 stations in total commissioned by next March.

Sabarmati is also focusing heavily on increasing piped gas to households. It has 30,000 households as customers at present and plans to add 15,000 more households every year for the next five years.

Sabarmati also says it is hard at work trying to keep its commitments to the Petroleum & Natural Gas Regulatory Board, which authorised it to operate last September. Sabarmati has committed to connect 100,000 Gujarat homes with piped gas by October 2014 and lay 1913-inch-km of steel pipelines with diameters between 4-inches and 6-inches.

“We have already laid 900-inch-km of steel pipelines,” boasts our company source. He adds the company hopes to lay another 400-inch-km of steel pipelines by March 2011.

Sabarmati also plans to have installed 190,000 kg/day of CNG compression capacity by then so it will be well on target to reach 280,800 kg/day by October 2014 as committed.