Adani CNG rise

Vol 14, PW 17 (24 Feb 11) News in Brief
     

Volatile spot LNG prices have forced Adani Gas to increase its Ahmedabad CNG price to Rs36.10/kg ($0.78) on February 16.

This marks a significant increase since last April when Adani’s CNG price for Ahmedabad stood at just Rs31.19 ($0.68). When contacted, an Adani source blames the latest increase on its main R-LNG supplier GSPC, saying it has no control over the price of spot LNG supplies.

Adani also points out that over 13 months have passed since it was allocated 200,000 cm/d of D6 gas by the oil ministry for its CNG operations but it has yet to begin receiving supplies. “We actually need at least 400,000 cm/d of D6 gas,” we are told.

Adani is one of the largest CNG retailers in Gujarat, selling about 300,000 kg/day of CNG from 48 ‘stand-alone’ stations in Ahmedabad. Meanwhile, BG subsidiary Gujarat Gas, which also depends on LNG supplies, increased its CNG price in south Gujarat on January 28from Rs32.45/kg ($0.70) to Rs35.25 ($0.76)/kg.