Some respite for 800 units as GAIL steps up supply to Gujarat Gas

Increased supply however less than contracted 2.13 mmscmd

There is some respite on the way for the gas starved industries of Gujarat as India's largest private gas distribution company Gujarat Gas Company Ltd, has seen a rise in the amount of gas supplied by Gas Authority of India Ltd (GAIL) from the PMT fields recently.

The volume of gas has been restored approximately to levels supplied prior to notification of the Force Majeure (FM) event at the oil evacuation system of the Panna and Mukta fields, the company informed Bombay Stock Exchange today.

"The increased gas supply by GAIL is however less than the contracted quantity of 2.13 mmscmd," a source privy to the development is quick to add without divulging the exact quantity.

A subsidiary of BG Group, Gujarat Gas had sent out a message to over 800 industrial gas customers that it could supply only 68 per cent of the daily contracted volume in July.

The company was also charging more for the quantity supplied beyond RSL (Ristricted Supply Level). "Gujarat Gas was forced to buy gas from spot at higher market rates and this was passed on to its customers," industry sources said.

The company has also written to the ministry requesting for allocation of about .5 mmscmd of D6 gas to meet their requirements.

Gujarat Gas has over 2.5 lakh residential and about 95 lakh CNG customers and their supplies have always been met, sources added.

The textile industry of Surat has received a setback when Gujarat Gas cut the supply to 66 per cent of DCQ in March this year.

Nearly 300 odd textile units lay impacted due to this move. The company has a gas supply agreement with these units to supply 8 lakh cubic meter gas per day.

The gas supply by GAIL to Gujarat Gas was brought down to around 40 per cent in the past. Gujarat Gas meets 75 per cent of its gas requirement from GAIL.

Gujarat Gas had earlier trimmed the supplies to 72 per cent in the month of February and it has further cut down gas supply.