Mahanagar Gas gets nod to expand operations
Mahanagar Gas, India’s major natural gas distribution company, has got authorisation to expand operations to Raigad district, Navi Mumbai and the new industrial area of Naina, being developed near Mumbai, all encompassing around 6,000-7,000 sq km. To begin with, the company would require an additional 0.5 million metric standard cubic meter of gas per day (mmscmd) to cater to the residential, industrial and commercial consumers.
Rajeev Mathur, managing director of Mahanagar Gas, told Financial Chronicle that the company got the authorisation recently and the work on CNG stations, local network as well as pipeline would start next month.
“To start with we would require an additional 0.5 mmscmd of gas. But it would increase as the industrial area develops and more people start to settle in the region.
“The entire plan would cover a population of around 10 lakh over the next 5-10 years. We are sourcing gas from GAIL and around 7-8 suppliers to meet the demand that currently stands at 2.5 mmscmd in Mumbai and adjoining areas,” said Mathur.
The rates that average around $7-$8 per mmBtu are competitive compared with a high of around $12 per mmBtu earlier. It would not only help us source gas at a low rate, but would also be advantageous for environment and consumers, he said.
Mahanagar Gas gets nod to expand operations
Mahanagar Gas, India’s major natural gas distribution company, has got authorisation to expand operations to Raigad district, Navi Mumbai and the new industrial area of Naina, being developed near Mumbai, all encompassing around 6,000-7,000 sq km. To begin with, the company would require an additional 0.5 million metric standard cubic meter of gas per day (mmscmd) to cater to the residential, industrial and commercial consumers.
Rajeev Mathur, managing director of Mahanagar Gas, told Financial Chronicle that the company got the authorisation recently and the work on CNG stations, local network as well as pipeline would start next month.
“To start with we would require an additional 0.5 mmscmd of gas. But it would increase as the industrial area develops and more people start to settle in the region.
“The entire plan would cover a population of around 10 lakh over the next 5-10 years. We are sourcing gas from GAIL and around 7-8 suppliers to meet the demand that currently stands at 2.5 mmscmd in Mumbai and adjoining areas,” said Mathur.
The rates that average around $7-$8 per mmBtu are competitive compared with a high of around $12 per mmBtu earlier. It would not only help us source gas at a low rate, but would also be advantageous for environment and consumers, he said.
The company reduced the prices of CNG and PNG in Maharashtra from April 1 to Rs 42.95 per kg and Rs 25.85 per standard metre, respectively, after the central government reduced the price of natural gas from $5.05 per mmBtu to $4.66 mmBtu. Prices would be reviewed next in October.
Despite falling crude prices the demand and adoption of the clean fuel such as natural gas would grow, he said and added that a green tribunal in Delhi recently said that increasing fossil fuel pollution is a growing concern.
https://www.mydigitalfc.com/news/mahanagar-gas-gets-nod-expand-operations-445
