AGCL, OIL, GGL sign agreement for setting up of new CGD

Assam Gas Company Limited (AGCL), Oil India Limited (OIL) and GAIL Gas Limited (GGL) signed an agreement on Thursday for incorporating a new company for implementation of the City Gas Distribution (CGD) network in five districts of Assam.

The agreement was signed by AGCL's managing director A K Sharma, OIL's executive director (Business Development) S K Singh and GAIL CEO A K Jana in the presence of Assam Industries and Commerce Minister Chandra Mohan Patowary.

The venture is the outcome of the extension of the National Gas Grid Pipeline (Urja Ganga Project) to Assam.

Patowary said that with the connection of Assam to the National Gas Grid, steady supply of natural gas shall initiate a spurt in the industrial sector, power generation sector, automotive CNG sector and domestic piped gas to households sector.

It will act as a catalyst to trigger immense development and employment opportunities throughout Assam and other parts of the north east, he said.

The supply of piped natural gas to the industrial, commercial and domestic customers in the first phase in Kamrup, Kamrup (Metro), Cachar, Hailakandi and Karimganj districts will be a major initiative in this regard, he said.

AGCL, along with OIL and GGL had formed a consortium and bid for laying, building and operating the City Gas Distribution Networks in two geographical areas (GA) in Assam.

GA-2 comprises of Cachar, Hailakandi and Karimganj districts and GA-3 comprises of Kamrup and Kamrup (Metro) districts.

The joint venture company shall implement the City Gas Distribution (CGD) Network and supply piped natural gas to the domestic, commercial and industrial customers and CNG (Compressed Natural Gas) to the vehicles in Kamrup, Kamrup (Metro), Cachar, Hailakandi and Karimganj districts.

In these five districts, approximately 4.16 lakh households will be connected with the piped natural gas (PNG) and 72 CNG stations will be set up in these districts at an estimated cost of Rs 1,700 crore.

Around 95,000 households will be connected with the PNG and 21 CNG stations will be set up in Cachar, Hailakandi and Karimganj districts at an estimated cost of approximately Rs 500 crore.

Around 3,21,000 households will be connected with the PNG and 51 CNG stations will be set up in Kamrup and Kamrup (Metro) districts in the coming years at an estimated cost of approximately Rs 1,200 crore.

Assam government has initiated the preliminary work on the project and the detailed feasibility study has been completed, Patowary added.