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Assam Gas Company, OIL, GAIL ink pact to set up new CGD

Friday, 12 Jul 2019
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A consortium of three public sector units , Assam Gas Company (AGCL), Oil India (OIL) and GAIL Gas, has signed a joint venture (JV) agreement for incorporating a new company for implementation of the City Gas Distribution (CGD) Networks.

The JV company will implement the CGD networks and supply piped natural gas to domestic, commercial and industrial customers, and CNG to 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 PNG and 72 CNG stations will be set up in these districts.

Urja Ganga Project which is 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. The gas pipeline construction work is being carried out by GAIL India.

The Barauni to Guwahati section of the National Gas Grid is likely to be completed by December 2020. Thereafter, eight states of the North-East will be connected by Indradhanush Gas Grid to the National Gas Grid.

The supply of piped natural gas to industrial, commercial and domestic customers in Phase-I in Kamrup, Kamrup (Metro), Cachar, Hailakandi and Karimganj districts will be a major initiative in this regard. AGCL, along with OIL and GAIL Gas, formed a consortium and bid for laying, building and operating the City Gas Distribution Networks in two GA in Assam.

GA-2 comprises Cachar, Hailakandi and Karimganj districts and GA-3 comprises Kamrup and Kamrup (Metro) districts. Around Rs 1,700 crore will be spent for the purpose in 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 crore.

Around 3,21,000 households will be connected with PNG and 51 CNG stations will be set up in Kamrup and Kamrup (Metro) districts in coming years at an estimated cost of approximately Rs. 1,200 crore.

The government of Assam has initiated 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.

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