Vehicles wait in line to be refueled with compressed natural gas (CNG) at an Indraprastha Gas Ltd. gas station in New Delhi, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

In Talks With Nayara Energy To Set Up CNG Outlets, Says IGL 

Nayara Energy Ltd. is in talks with fuel retailer Indraprastha Gas Ltd. to set up compressed natural gas stations at its pumps, according to IGL Managing Director ES Ranganathan.

“We’re setting up CNG outlets in petrol pumps,” Ranganathan said. “We’re going to extend (the opportunity to set up the stations) to Nayara. Haldia Petrochemicals have also approached us.”

The government had recently launched the tenth round of city gas distribution auctions to increase the share of natural gas in the primary energy basket to 15 percent over the next few years from 6.2 percent currently. Winners will have exclusive rights to sell CNG and piped natural gas for a fixed time period and fuel retailers in such regions will have to partner with these operators to sell natural gas at their outlets.

“Setting up CNG stations at petrol pumps will be limited to our area of operations like Delhi, Noida, Ghaziabad, Gurgaon, Rewari, Karnal,” said Ranganathan. “We haven’t worked out the details with Nayara about the number of outlets but it will depend on area.” The process, he said, is in the stage of signing of letters of intent and nothing has started on the ground.

Also read: City Gas Distribution Auction: It’s Adani Vs The Rest

Indraprastha Gas, according to Ranganathan, will:

  • Invest Rs 2.5 crore on CNG stations, that will have capacity to retail up to 10,000 kg of CNG per day.
  • Has a capex of Rs 700 crore for this year, of which Rs 300 crore is for Delhi region, Rs 50 crore is for NCR and the remainder for Gurugram.

Ranganathan said the company—which has a pipeline network of around 11,000 km in and around Delhi—will install 2,10,000 piped natural gas connections this year, which will be a record. “Gas demand will increase by 60,000 cubic meters per day. We have already crossed 1,78,900 PNG connections till date,” he said. “Last year, we had set up 1.5 lakh gas connections.”

CNG Buses

Indraprastha Gas, Ranganathan said, plans to operate buses fueled by CNG soon. The fuel retailer had announced in December the proposal to operate, along with Delhi Transport Corporation, long-distance buses powered by compressed natural gas on four routes by May. “We are starting with 20 buses all over the country. GAIL is one of the partners. We will have five buses each in Delhi, Mumbai, Pune and Bengaluru,” he said, adding that the project will be piloted in Delhi.

The gas retailer, he said, has an idea where a bus can ply for 700-1,000 km and can have a refill of CNG. “Those buses are ready and we’re going for Automotive Research Association of India's approval.”