MGL to begin CNG supplies in Navi Mumbai

Vol 9, PW 6 (30 Jun 05) Midstream & Downstream

Mahanagar Gas, a joint venture between British Gas, GAIL and the Maharashtra government, will begin selling compressed natural gas in Navi Mumbai sometime in September or October this year.

When that happens, it will be MGLs second foray into the satellite towns and cities outside its main market of Mumbai. In March, MGL set up its first CNG station in Thane city, on the outskirts of Mumbai and began supplying piped natural gas to 1200 customers.

In March, PNG supplies also began to 450 houses in the Mira-Bhayander township on the periphery of Mumbai. MGL must first lay a pipeline across the 1.2-km Thane Creek for it to begin supplies to Navi Mumbai.

All permissions and approvals are in hand, MGL managing director AK Purwaha tells this report. Along with CNG supplies to Navi Mumbai, adds Purwaha, MGL is also targeting the Thane-Belapur industrial belt for PNG customers.

In 2005-06 we will have 13 more CNG stations in Thane and will set up our first CNG station in Mira-Bhayander. By the end of this year MGL wants to supply PNG to 15,000 customers in these two townships.

Mind you, theres no shortage of natural gas for these projects. Says Purwaha: We have 0.5m cm/d allocated for the domestic and transport sectors in these new areas from Mumbai High.

Thats enough for about two to three years. For Mumbai itself, the gas allocation from Mumbai High is 1.5m cm/d.

MGL currently sells only 1.25m cm/d of this through 108 CNG stations and 228,000 households and commercial establishments. MGL is hard at work to add 22 CNG stations in Mumbai by March 2006.

Every year we add about 50,000 households (on piped natural gas) in Mumbai.