Torrent awaits PNGRB nod to buy Sanwariya Gas which sells CNG in Mathura
Torrent Gas, Torrent Group’s city gas distribution (CGD) arm, said that the company is awaiting clearance from the Petroleum and Natural Gas Regulatory Board (PNGRB) for the completion of Sanwariya Gas, which holds the licence to retail CNG to automobiles and piped gas to households for cooking purposes in Mathura.
The company is planning to invest around Rs 10,000 crore across the country in the next five years for creating infrastructure in 16 geographical zones that it won, spread across 33 districts and seven states. On Tuesday, the company launched compressed natural gas (CNG) in Chennai and Tiruvallur districts by inaugurating 25 CNG stations and one City Gate Station of Torrent Gas.
In a span of two years, Torrent had acquired three CGD players including Mahesh Gas in Pune, Siti Energy in Moradabad and Dholpur CGD from Essel Group. “We would certainly keep evaluating inorganic opportunities. We have already signed a share purchase agreement for Sanwariya Gas and now we are awaiting PNGRB approval,” said Jinal Mehta, Director, Torrent Gas. Torrent Gas had acquired a 5 per cent stake in the Indian Gas Exchange (IGX), an arm of the Indian Energy Exchange (IEX) for reportedly around Rs 4 crore.
With the addition of 25 CNG stations in Chennai and Tiruvallur, Torrent now has around 214 operational CNG stations across the country and is planning to increase the number of operational CNG stations to 350 by March 2022 and 500 by March 2023. In January 2021.
“In Chennai and Tiruvallur, our target is to commission 50 CNG stations by September 2021 and 100 CNG stations by June 2022. Torrent Gas intends to make a total investment of Rs 5,000 crores in Tamil Nadu over the next five years towards the creation of CGD infrastructure including laying pipelines to provide piped natural gas to domestic, industrial and commercial customers and setting up CNG stations. The project shall generate direct and indirect employment for approximately 5000 people in the state,” Mehta said. At a national level, Torrent Gas has so far invested around Rs. 1,900 crores.
Interestingly, Torrent Gas has announced an aggressive price of Rs 51.35 per kilo gram for CNG, in Chennai and Tiruvallur, which is the second lowest CNG price in the country after the national capital region. At this price, adoption of CNG as a fuel will help customers in Chennai save up to 66 per cent compared to petrol, 61 per cent versus diesel and 42 per cent versus Auto LPG. CNG prices are also much more stable as compared to those of petrol and diesel, which undergo frequent changes. Till now, there were only 12 CNG stations in the entire state of Tamil Nadu.