Date:25/03/2005 URL: http://www.thehindubusinessline.com/2005/03/25/stories/2005032502420200.htm

Back GAIL ties up with BPCL to supply CNG

Our Bureau

New Delhi , March 24

GAIL (India) Ltd has formed a joint venture company with Bharat Petroleum Corp Ltd (BPCL) for launching compressed natural gas (CNG) in Kanpur. Central UP Gas Ltd, the joint venture company, would distribute CNG for automobiles and piped natural gas for household use in Kanpur, a GAIL release said.

With BPCL's competency in retail marketing and GAIL's expertise in technical aspects of gas marketing, the new company is well poised for tremendous growth in future, the release said.

The Petroleum Ministry has allocated 1 lakh standard cubic meter per day of natural gas for Kanpur city gas. According to an estimate, the demand for CNG and PNG is going to increase from 28,000 standard cubic metre per day at present to 2 lakh standard cubic metre per day in 2007.

The company will set up one Mother, one Online and one Daughter Booster station in Kanpur in 2005. These will go up to two each of Mother and Online stations and four Daughter Booster stations by 2007. GAIL has laid a pipeline from Sachendi to supply natural gas to Kanpur. The laying of pipeline is complete and is to be commissioned soon. Starting with the first CNG station at Kanpur by August 2005, the company plans to expand CNG facilities in a phased manner.