Ambitious CNG expansion for Gujarat Gas

Vol 14, PW 16 (10 Feb 11) Midstream & Downstream

Rising petrol prices are making everyone hungry for a piece of the CNG business.

Sabarmati Gas and Essar are eyeing north Gujarat (see above) but in south Gujarat it is BG subsidiary Gujarat Gas that’s going CNG crazy. PETROWATCH learns Gujarat Gas has set up seven CNG stations in south Gujarat in the past four months alone and has ambitious plans to commission another 11 before the end of 2011, taking its total number of CNG stations up to 53.

“This is the most interest Gujarat Gas has shown in CNG in the past 20 years,” says an industry source. When contacted, a Gujarat Gas source encourages “anyone with 1200-sq metres of open land with a 30-metre ‘frontage’” near the outskirts of Surat to apply for a Gujarat Gas CNG franchise.

But he adds that the company will give top priority to those who have land designated by the government as ‘non-agricultural.’ Gujarat Gas operates 42 CNG stations in its core operating areas of Surat, Ankleshwar and Bharuch, catering to 126,000 cars and auto-rickshaws daily.

In Surat it plans to set up new stations on the Mora Bhagal to Dandi road, the Ugat to Bhesan road, the Adajan to Pal road, the Udhna to Pandesara road and on Dumas road. All these areas are developing fast.

“Just 15 years ago these areas were filled with nothing but sugarcane fields,” says a Surat resident. “Today they are full of housing estates with thousands of apartments and homes.

” Gujarat Gas will commission another six CNG stations in areas to the north of Surat city which are still dominated by sugarcane fields like Valod, Mandvi, Utran and Mota Varachha; and on the Mangrol to Tadkeshwar and the Kamrej to Kim roads. Those interested in Gujarat Gas CNG franchises must submit their bids and land documents to the company by February 15.

LNG Summit