Date:02/08/2007 URL: http://www.thehindu.com/2007/08/02/stories/2007080254651800.htm

Business

GAIL to focus on city gas projects

Sujay Mehdudia

Identifies 238 cities for expansion

NEW DELHI: Terming the next decade as ‘decade of city gas distribution,’ GAIL (India) has drawn up a roadmap for massive expansion of piped natural gas (PNG) and compressed natural gas (CNG) distribution to households and the transport sector, respectively, in the next five years. “With natural gas emerging as the fuel of choice, GAIL is of the view that post-2008, there will be a lot of gas in the country and with the kind of pipeline network that the company has, a major expansion in city gas and CNG distribution will be the focus of our attention,” GAIL Chairman and Managing Director U. K. Choubey said here on Wednesday.

Mr. Choubey said GAIL had identified 238 cities for city gas distribution and setting up CNG stations. “Our outfits in Delhi and Mumbai are doing well but due to lack of availability of gas, there are some glitches being faced in expansion plans in Kanpur, Lucknow, Agra and Hyderabad. We hope to get going in these cities by the middle of next year,” he said.

He said GAIL was the first company to introduce city gas projects in India for supplies to households, commercial users and the transport sector by forming joint ventures.

On the global front, GAIL has established its CNG and city gas presence in Egypt through equity participation in Fayum Gas, Shell CNG and Natgas. It has also acquired a stake in China Gas Holdings for CNG and city gas distribution opportunities in mainland China.

The priority cities identified by GAIL include Hyderabad, Chennai, Bangalore, Kolkata, Agra, Kanpur, Lucknow, Faridabad, Pune, Patna, Varanasi, Ahmedabad, Sholapur, Bareilly, Rajahmundry, Vijayawada, Vadodara, Navi Mumbai and Thane, National Capital Region cities of Gurgaon and Noida, Allahabad, Jhansi, Mathura, Gwalior, Indore, Ujjain, Rajkot, Surendranagar, Kota and Kochi.