IGL will invest Rs 8,000 crore over five years for expansion

Indraprastha Gas Ltd, the country’s largest CNG retailer, will invest around Rs 8,000 crore over the next five years to expand the city gas network of CNG stations and pipelines, bringing environmentally friendly fuels to household kitchens and factories, the company’s managing director Sanjay Kumar said on Friday.

Indraprastha Gas Limited (IGL) currently has large operations in the national capital and surrounding cities. It is looking to expand to a larger scale in the districts of Uttar Pradesh, Rajasthan and Haryana, for which it has won a city gas license in the recent bidding round.

“We have plans to invest Rs 6,000 crore in seven new geographical areas (GAs) in the next five years,” he told reporters.
The remaining amount will be used to consolidate the presence in the existing area of ‚Äč‚Äčoperation.

IGL now has retail licenses for CNG to automobile and piped natural gas (PNG) households in 11 GAs in four states.

“Seven new GAs currently contribute 7 per cent to sales and we see it grow to 40 per cent in the next five years,” said Pawan Kumar, Director (Commercial), IGL.
The expansion of Citi Gas is part of the government’s efforts to increase its share of natural gas in its primary energy basket from the current 6.7 percent to 15 percent by 2030. The city’s gas projects aim to replace polluted liquid fuels with environmentally friendly gas to help meet India’s carbon emissions target.

For the current fiscal year starting April 1, IGL estimates a daily growth of 6.3 million standard cubic meters in CNG and 25 percent growth in 0.62 MMSCMD in PNG. Gas sales to industrial and commercial customers could increase by 3% to 0.98 MMSCMD.

Over the next five years, daily gas sales are projected to increase from the current 6.99 mmscmd to 10 mmscmd, says Pawan Kumar.
As part of the expansion plan, the company plans to increase the number of CNG stations from the current 711 to 1,100 and now provides PNG connections to 2.7 million households as against 2 million.

The firm had installed 167 CNG stations in the last financial year and plans to install 150 this year. Of these, there are 12 mega stations in Delhi, including six on the Ring Road, he said.

The company plans to set up six stations delivering liquefied natural gas (LNG) to long-distance heavy vehicles such as trucks and buses on national highways around its GA with an investment of Rs 100-120 crore in 2-3 years.

The company also wants to set up 50 battery replacement facilities for electric vehicles in the National Capital Region. It has already introduced two fixed charging facilities at its CNG stations and five more are in the works, he added.

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