Spring fever appears to have hit the Indian NGV sector with a spate of joint venture announcements made last month that will see a rise in the number of CNG markets and refuelling stations both locally and internationally.
India, along with China, was identified in a report released in February by INFORM Inc, as an example of a country which was applying forward thinking in adopting NGV programs on a large scale. Government and publicly owned energy companies have since reinforced the point, announcing several ventures to establish CNG refuelling sites in India and overseas.
Among the programs announced were:
- Gail (India) Ltd has been short listed for a joint venture with the Syrian Gas Company for the establishment of a natural gas network in Damascus, including between 3 and 5 CNG refuelling stations in the city, with more expected to be added later on.
- Gail (India) Ltd has formed a joint venture company — Central UP Gas Ltd — with Bharat Petroleum Corp (BPCL) to establish a CNG network in Kanpur. The company plans to set up one mother, one online and one daughter booster stations in Kanpur this year, increasing to two each of mother and online stations and four daughter stations by the year 2007.
- BPCL is to establish joint venture arrangement with Gujarat Adani Energy Ltd (GAEL) for the establishment of CNG dispensers at four BPCL petrol stations.
- BPCL has also received a licence for selling compressed natural gas (CNG) in three districts of Gujarat – Gandhinagar, Mehsana and Banaskantha. It also plans to introduce CNG in at least two new markets beyond Gujarat.
- BPCL is also planning acquisitions of petrol outlets in Singapore, though it is uncertain at this stage if CNG will feature in their plans.
Gail (India) Ltd, which is part owned by BG Group of the UK, already has an existing joint venture relationship in Egypt via a 22% stake in Shell CNG Egypt. Further joint venture announcements, possibly involving China, Iran and other countries are expected in coming months.
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