(EnergyAsia, March 31) — Indian gas major GAIL is ready to introduce compressed natural gas (CNG) to Kanpur city in Uttar Pradesh state.


“This is a major milestone in our journey towards introducing the green fuel CNG in cities in India to reduce environmental pollution,” said Proshanto Banerjee, GAIL’s chairman and managing director. Mr Banerjee, also the first chairman of Central Uttar Pradesh Gas Limited — a joint venture company between GAIL and BPCL for city gas distribution in Kanpur — revealsed this after the JV company’s recent first board meeting in New Delhi.


A.K.Bansal, BPCL’s executive director for corporate affairs, and a director of the joint venture, said:


“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 100,000 standard cubic metres/day (SCMD) of natural gas for Kanpur’s use. The demand for CNG and piped natural gas (PNG) is expected to rise from 28,000 SCMD to 200,000 SCMD by 2007. The company plans to set up three stations in Kanpur this year.


GAIL has laid a 18.2-km pipeline from Sachendi to supply natural gas to Kanpur city. Starting with the first CNG station at Kanpur in August 2005, the company plans to expand CNG facilities in a phased manner.


The use of CNG and PNG for transportation will reduce pollution in the city. 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 PNG and CNG to retail customers.