The Hindu Business Line : BPCL's gas supply project in Gujarat to be ready by April

Depending on the success of this project, the oil company will invest about Rs 350 crore to cement its moorings in this market in Gujarat in the next few years, sources told Business Line.

Apart from this, BPCL will be expanding its share in the gas distribution market by entering other States through joint ventures with Gail India Ltd.

BPCL already has a stake in Indraprastha Gas Ltd (IGL), which distributes compressed natural gas (CNG) to vehicles and piped natural gas to households in Delhi.

BPCL's pilot project in Gujarat envisages buying of natural gas from Gujarat State Petronet Ltd and distributing it through pipelines to various consumers.

In the first phase of the project, BPCL is laying a network of pipeline in Gandhinagar to cater to industrial consumers in and around the State capital.

"This part of the project will go on stream in April. The second phase, where the company will set up CNG stations to cater to vehicles and other consumers, will be ready by June or July this year," a company source said.

BPCL's investment plan of Rs 350 crore will see this facility extended to other parts of Gujarat. The company has identified three districts including Mehasana and Sabarkantha to set up the gas distribution and CNG facilities.

BPCL will also be expanding its gas distribution market to other States by entering Pune and Kanpur through joint ventures with GAIL. Kanpur appears to be the first on the list, with the two companies, along with other partners, likely to form a separate company soon.

Meanwhile, IGL, which set a new trend in gas distribution, is on an expansion drive, planning to invest about Rs 163.3 crore to expand its gas distribution network in Noida, including Greater Noida, Faridabad and Gurgaon.

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