Assam Gas, Oil India & GAIL sign pact setting up new CGD company

Assam Gas, Oil India & GAIL sign pact for setting up new CGD company

7:14 AM, 12th July 2019
In five districts, approximately 4.16 lakh households will be connected with the Piped Natural Gas (PNG) and 72 CNG stations will be set up in these districts.
In five districts, approximately 4.16 lakh households will be connected with the Piped Natural Gas (PNG) and 72 CNG stations will be set up in these districts.

GUWAHATI, INDIA: Assam Gas Company Ltd (AGCL), Oil India Limited (OIL) and GAIL Gas Ltd has signed a joint venture agreement for incorporating a new company for implementation of the City Gas Distribution (CGD) Networks.

The Joint Venture Company shall implement the City Gas Distribution (CGD) Networks and supply Piped Natural Gas to the domestic, commercial and industrial customers and CNG (Compressed Natural Gas) to the vehicles in Kamrup, Kamrup (Metro), Cachar, Hailakandi and Karimganj districts in Assam.

In these five districts, approximately 4.16 lakh households will be connected with the Piped Natural Gas (PNG) and 72 CNG stations will be set up in these districts.

In a statement the state government stated, Government of Assam, “Under the persuasive follow up of the Government of Assam, the National Gas Grid Pipeline

(Urja Ganga Project) which was originally planned for extension from Jagadishpur in Western Uttar Pradesh, to Haldia in West Bengal, was consented to be extended to Guwahati in Assam, by the Government of India through an intermediate spur line from Barauni in Bihar to Guwahati and the Gas Pipeline construction work is being carried out by GAIL India Limited. The Barauni to Guwahati section of the Nation Gas Grid is likely to be completed by December, 2020. Thereafter, eight states of the North East will be connected by Indradhanush Gas Grid Ltd. to the National Gas Grid.”

Managing Director, AGCL., Aditya Kumar Sharma; Executive Director (Business Development), Oil India Limited, SK Singh; CEO, GAIL, Gas Ltd, AK Jana signed the Joint Venture Agreement in the presence of Industries & Commerce Minister Chandra Mohan Patwary, Media Adviser to Chief Minister, Hrishikesh Goswami.

The statement stated with the connection of Assam to the National Gas Grid, steady supply of Natural Gas shall initiate a spurt in the industrial sector, power generation sector, automotive CNG sector and domestic piped gas to households sector and it will act as a catalyst to trigger immense development and employment opportunities throughout Assam and other parts of Northeast Region.

The supply of Piped Natural Gas to the industrial, commercial and domestic customers in the first phase in Kamrup, Kamrup (Metro), Cachar, Hailakandi and Karimganj districts will be a major initiative in this regard.

AGCL, along with OIL and GAIL Gas Ltd (GGL) formed a Consortium and bid for laying, building and operating the City Gas Distribution Networks in two Geographical Areas (GA) in Assam. GA-2 comprises of Cachar, Hailakandi and Karimganj districts and GA-3 comprises of Kamrup and Kamrup (Metro) districts.

After competitive bidding, the Consortium won and was awarded by the Petroleum & Natural Gas Regulatory Board (PNGRB) the authorization for the work. Around Rs.1,700 crores will be spent for the purpose in the coming years. Around 95,000 households will be connected with the Piped Natural Gas (PNG) and 21 CNG stations will be set up in Cachar, Hailakandi and Karimganj districts at an estimated cost of approximately Rs. 500 crores. Around 3,21,000 households will be connected with the Piped Natural Gas (PNG) and 51 CNG stations will be set up in Kamrup and Kamrup (Metro) districts in the coming years at an estimated cost of approximately Rs. 1,200 crores.

The Government of Assam has initiated the preliminary work on the project and the Detailed Feasibility Study has been completed. Domestic and commercial pipe gas connections in Guwahati city will be available within the next two years on the city being connected with the National Gas Grid. In addition, CNG Stations will also be set up during this period to meet the requirement of clean fuel for transport sector.

© Economic Times

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