GGCL blames shortage of indigenous gas for price revision

GGCL blames shortage of indigenous gas for price revision

Vadodara: The Gujarat Gas Company Limited (GGCL) has blamed shortage of indigenous gas and procurement of Re-gasified Liquefied Natural Gas (RLNG) at international prices for the price revision by it.

“With the current supplies of gas from the Panna-Mukta and Tapti (PMT) fields decreasing by about 50% of the original volumes at the start of 2008, GGCL is left with no other option but to procure more expensive RLNG for meeting the demands of its customers," a company spokesman said.

RLNG is currently priced at two to three times the prevailing prices of indigenous gas available to GGCL, the official said.

GGCL presently caters to over 4.5 lakh customers across various segments covering domestic, CNG, commercial and industrial customer segments located in and around Surat, Bharuch and Ankleshwar in Gujarat.

The company procures gas from both indigenous (PMT Fields) as well as imported sources (RLNG) to efficiently service its market.

The gas from indigenous sources in the company’s portfolio, which is mainly from the Panna-Mukta and Tapti (PMT) fields, is gradually declining. On the other hand, the demand for natural gas is increasing consistently thereby widening the gap of demand - supply in its markets, company sources said.

While the company continuously seeks higher allocation of domestic gas, the proportion of RLNG is expected to increase significantly in the company’s portfolio over the next few years in the backdrop of declining availability of gas from indigenous sources.

RLNG will constitute close to 50% of GGCL’s supply portfolio in comparison to less than 15% in 2009, the spokesperson said.