The Hindu Business Line : GAIL looking at CNG opportunities in Russia

New Delhi, Nov. 22 GAIL (India) Ltd plans to tap compressed natural gas (CNG) opportunities in Russia. The company is in discussions with Russian gas firm Itera for setting up city gas distribution network in Moscow to retail CNG to automobiles. The company is working on draft areas of cooperation with the Russian firm, Mr U.D. Choubey, Chairman and Managing Director, GAIL said.

He said: “natural gas is a much cheaper and safer fuel as compared to petrol, diesel and LPG. The company sees a lot of opportunity in Russia.”

Besides, natural gas is a clean-burning fuel that reduces vehicle maintenance by extending interval of oil change and making spark plugs last longer, he said.

On the global front, GAIL has established its CNG and city gas presence in Egypt, through equity participation in Fayum Gas, Shell CNG, and Natgas of Egypt. It has also acquired stake in China Gas Holding for CNG opportunities in Mainland China.

City network

In the domestic market, the projected availability of gas is expected to increase substantially from the present around 95 MMSCMD to around 170 MMSCMD in the coming two years, Mr Choubey said. “One of the major beneficiaries of this large availability of natural gas will be the city gas distribution segment, catering to the transportation and the household sectors in cities across the country,” he said.

The rate of growth in city gas distribution can be seen from the fact that out of the 376 CNG stations in the country today, 172 stations were added during the last two years — a growth of almost 84 per cent, he added.

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