For lakhs of consumers in Ahmedabad and other major cities of the state, the wait for cheaper CNG and domestic PNG just got a little longer. Although gas prices were expected to decline December 1 onwards, a technical issue has delayed the good news by two to three days at least.
Following directions from the union ministry of petroleum & natural gas (MOP&NG), GAIL has made allocation of gas to city gas distribution (CGD) entities in the state. But the actual supply may begin only in the middle of next week.
GAIL wrote to CGDs informing them about the quantity of gas allocated to them on Friday. Adani Gas, said an official, has been allocated 3.56 lakh standard cubic metre (scm) per day for Ahmedabad and 18,000 scm for Vadodara. GSPC gas has been allocated 5.8 lakh scm per day and Sabarmati Gas 1.7 lakh scm per day.
The allocation made to Gujarat Gas Company could not be ascertained.
GAIL has informed the CGDs that the landfall point (delivery point) for gas would be Suvali near Hazira. Gujarat State Petronet Limited (GSPL) has a pipeline network in the area. But, according to a CGD official, there would be problems in transporting the gas to Ahmedabad or Gandhinagar.
“We are told by GSPL that it is low-pressure gas and cannot be transported to Ahmedabad or Gandhinagar. This means GAIL has allocated gas but it has not started flowing in,” said an official of a leading CGD.
The official of another CGD, too, spoke about technical problems in transporting the gas from Suvali.
CGDs said the transportation issue would be sorted out if instead of Suvali, GAIL delivers the gas at Dahej in Bharuch. What this means for the consumer is that CNG and domestic PNG prices will not come down, at least before another two to three days.
CGDs said they were still working on the pricing in view of the formal allocation of cheaper gas, but warned that the decline may not be as steep as thought earlier.
“Earlier, CNG prices were expected to fall to Rs55-56 per kg from the current average of Rs66-68. But, we fear that the fall may not be as sharp,” said a CGD expert.
The state government, meanwhile, has said that the transportation issue would be sorted out soon. “We will talk with GAIL to iron out the technical problems,” said state energy secretary DJ Pandian.
Following a Gujarat high court order, the MOP&NG recently came out with guidelines for allocation of domestic gas to all CGDs in the country at a uniform rate.
The order marked the end of a long-standing demand of the state for allocating gas at the same rate as in Delhi and Mumbai.