Kumari Palany & Co

Piped gas connection in Chennai to fuel 44 lakh customers

Posted on: 25/Sep/2018 3:09:10 PM
There comes a news of relief after high fuel prices in the form of piped natural gas connection in Chennai. More than 44 lakh piped natural gas connections and 333 Compressed Natural Gas (CNG) pump stations will be introduced in Chennai over the next few years as per the scheme of Centre’s city gas distribution (CGD) project.

The latest update from the Petroleum & Natural Gas Regulatory Board announced the status of ninth round of bids for the project. Torrent Gas Private Limited and AG&P LNG Marketing Pvt Ltd will start the initial construction process and facility build ups in Chennai that includes the pipeline allowing uninterrupted supply of natural gas.

Adani Gas Limited, Indian Oil Corporation and other private oil companies have won the tenders to set up such pump stations and PNG connection in many parts of Tamil 
Nadu. The projects aims for a green approach in all Indian cities by laying down Gas Grid within 2020. Chennai comes into the category next after Delhi and Mumbai to use CNG that costs Rs 40 per Kg replacing petrol and diesel fuels for the vehicles.

The average mileage for Compressed Natural Gas is estimated around 20 to 25 km per kg. The piped natural gas system is comparatively cheaper than the liquefied petroleum gas. Many state owned natural gas processing and distribution units are in a full swing to cope up with the future plan to cover the fuel needs all over the nation.

Chennai and other parts of Tamil Nadu gets the facility through pipeline connection that will be routed by GAIL pipelines running from Kochi to western districts. Ennore-Tuticorin is another pipeline route for the natural gas supply. Eighty Six geographical areas (Gas) were included in the bidding process that included seven areas of Tamil Nadu. Each area may require an investment of Rs 300 to Rs 500 crore over a period of eight years.