Gujarat all set to get cheaper natural gas

GAIL resolves technical issue, agrees to supply from Dahej

Gujarat is all set to get cheap natural gas for domestic and vehicular use with the Central government and Gas Authority of India Ltd (GAIL) resolving the technical issue by agreeing to supply gas at Dahej instead of Hazira as proposed earlier.

The Central government in a affidavit filed before division bench of Chief Justice Bhaskar Bhattacharya and Justice J B Pardiwala also gave assurance that there will be no discrimination to any state with regard to supply of compressed natural gas (CNG) for domestic and vehicular use.

Joint secretary ministry of petroleum and natural gas (MoPNG), New Delhi, P K Singh today remained present in the court as per the directions issued during the last hearing on December 3.

The court has further directed the Union government to adhere to the guidelines issued by the ministry of petroleum and natural gas pursuant to the Gujarat High Court judgement of last year directing it to supply CNG to Gujarat under administered price mechanism (APM).

The High Court passed the directions on a public interest litigation (PIL) filed by one Dhrangadhra Prakrutik Mandal which had alleged discrimination against Gujarat in allocation of natural gas at APM in comparison with metropolis like Delhi and Mumbai.

The dispute had arose after the GAIL (India) Ltd decided to supply the increased quota of natural gas through Hazira facility, but the GSPC Gas Co Ltd requested it to shift its supply point to Dahej, from where the CGDs of Gujarat like GSPC, Sabarmati Gas, Adani and HPCL can off take the gas from the GSPL high pressure gas grid.

The gas grid from Hazira is a low pressure line, which can supply gas at 35/45 bar, and from this low pressure pipeline, gas cannot be taken to the high pressure line.

Today, I H Syed, assistant solicitor general of India appearing on behalf of the Central government informed the court that the technical problem that had occurred earlier regarding supply of the natural gas Gujarat has been resolved and GAIL has agreed to supply the gas at the GSPL-PLL Direct Connectivity at Dahej, subject to the statutory tariffs decided by Petroleum & Natural Gas Regulatory Board and relevant taxes.

In view of Syed's submission and agreement arrived among GAIL and GSPC Gas Co Ltd the court did feel need for further orders.

"It is needless to mention that the respondent authority (MoPNG) will comply with the averments made in the earlier affidavit filed before this court, including compliance of the guidelines stated in the said affidavit. The Gas Companies, it goes without saying, will now enter into necessary agreement and will issue a Letter of Credit as required under the law," the court stated in while disposing off the petition filed by Dhrangadhra Prakrutik Mandal.