Mahanagar Gas plans to add 670 km of grid in 5 years

Mahanagar Gas plans to add 670 km of grid in 5 years

City gas distribution player, Mahanagar Gas Limited on Wednesday informed that the company plans to

set up additional 670 kilometers of distribution pipelines to its existing CGD network of 4,646 kilometers

over a period of next five years.

The company, jointly promoted by GAIL (India) Limited and BG Asia Pacific Holdings Pte Ltd also looks to

open additional 83 CNG stations to the existing 88 CNG stations for its automobile consumers. This will

mean coverage of most of the Mumbai Metropolitan Region (MMR).

"We are in the process of expanding our network by around 670 kilometers and open 83 more CNG

stations including some on highways to facilitate customers travelling out of the cities. As a business

strategy, we are also entering into new geographical areas," said Rajeev Mathur, managing director,

Mahanagar Gas Limited informed here during a roadshow for the company's upcoming Initial Public

Offer (IPO).

Speaking to BusinessLine, Mathur expressed confidence over the government's policy on CGD sector

and infrastructure development by the Centre. "The initiative of Smart Cities will boost the prospects for

the City Gas Distribution sector. One such smart city project is being developed in Raigad district and

therefore since its a greenfield project, it will have well-planned gas grid network," said Mathur adding

that due to congestion in the existing cities, setting up of new gas infrastructure becomes time

consuming. The company expects to commence operations in Raigad district in fiscal 2017.

The company will also look to bid for newer geographies in the upcoming bidding process for cities like

Chennai, Coimbatore, Vishakhapattanam, Bhopal, Jaipur, Udaipur, Kolhapur among others.

MGL currently sells about 2.43 million metric standard cubic meters per day (mmscmd) of gas to its CNG

and PNG customers, which forms about 470,478 and 865,000 respectively. From the current 2.43

mmscmd of gas sale, MGL's market has potential of about 5 mmscmd of natural gas. plans-to- add-670- km-of- grid-in- 5-


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