GAIL to supply CNG to Kanpur

March 23, 2005, New Delhi GAIL is all set to introduce CNG (Compressed Natural Gas) to the biggest city of UP – Kanpur.

“This is a major milestone in our journey towards introducing the green fuel – CNG in various cities in India to reduce environmental pollution”, said Mr. Proshanto Banerjee, Chairman and Managing Director, GAIL (India) Limited, who is the first Chairman of Central U P Gas Limited – a Joint Venture company set up by GAIL and BPCL for city gas distribution in Kanpur; immediately after the first Board Meeting of the JV company held in New Delhi.

Mr A. K. Bansal, Executive Director (Corporate Affairs), BPCL and Director of this joint venture said that “This is another step in strengthening the relationship between BPCL and GAIL. With BPCL competency in retail marketing and GAIL expertise in technical aspects of gas marketing, the new company is well poised for tremendous growth in future”.

The Ministry of Petroleum and Natural Gas has allocated 1 lakh SCMD of natural gas for the city of Kanpur. According to an estimate, the demand for CNG and PNG is going to increase from 28,000 SCMD at present to 2 lakhs SCMD in the year 2007. The company plans to set up one Mother, one Online and one Daughter Booster stations in Kanpur in the year 2005. These will be increased to two numbers each of Mother and Online stations and four numbers of Daughter Booster stations by the year 2007.

GAIL has laid an 18.2 km pipeline from Sachendi to supply natural gas to Kanpur city. The laying of pipeline is complete and is expected to be commissioned soon. Starting with the first CNG station at Kanpur by August 2005, the company plans to expand CNG facilities in a phased manner.

The use of CNG and PNG in Kanpur for automotive and domestic purposes will reduce pollution level. City gas distribution projects have been successfully implemented in Delhi and Mumbai. In Delhi, Indraprastha Gas Limited, a Joint Venture between GAIL and BPCL is supplying Piped Natural Gas and Compressed Natural Gas to retail customers including domestic, commercial, industrial and automobiles resulting in a cleaner environment in the city.