Mahanagar Gas plans mobile CNG services in Mumbai

By: | Published: February 23, 2018 6:56 AM

Mahanagar Gas is planning to start mobile dispensing of CNG in Mumbai this year, especially in regions with last-mile connectivity issues and problems of land acquisition.

Mahanagar Gas, Mumbai, Rajeev Mathur, CNG stations,  pipeline connectivity, news on Mahanagar GasMahanagar Gas is also evaluating venturing out of Maharashtra and plans to bid in the next round of bidding the Government calls for. (Reuters)

Mahanagar Gas is planning to start mobile dispensing of CNG in Mumbai this year, especially in regions with last-mile connectivity issues and problems of land acquisition. Rajeev Mathur, MD of Mahanagar Gas, told FE, “We have approached the government to allow us use of mobile dispensing facility so there is no requirement of land and issues of pipeline connectivity. The intention is to take this to areas which don’t have fuel stations and pressure is a problem. Also, in newer areas where pipeline takes time to get connected, mobile dispensing will be a viable and feasible option.” The system will work like this: The trailer will have a CNG-filled cascade and a dispenser. It will go to the parking lot or bus depot or a taxi stand and directly fill the vehicles.

“We already have tankers going to daughter booster stations, the only difference is they don’t have dispensers and are stationary at the fuel stations. What we are saying is just put a dispenser to these tankers. It’s a world-wide proven thing and once the safety regulator gets convinced, it will happen in couple of months. We see this happening in the current calendar year,” Mathur said. “We can replicate the model very fast once we get the approval. It will kick-start usage faster and reduce the cost of laying the pipeline.”

Mahanagar Gas is also evaluating venturing out of Maharashtra and plans to bid in the next round of bidding the Government calls for. “We will be location agnostic. All these approaches we are taking will help us to do away with logistics issues, clearances, laying pipelines and long gestation period, etc. Besides, we have asked government to ensure that every residential society should come prepared with gas pipelines that would make the entire process very efficient,” Mathur said.The company plans to invest Rs 500 crore in FY19 in expansion of pipelines and setting up of CNG stations. In FY18, the company has invested Rs 350 crore.

“We target to connect 30 lakh houses in the Mumbai, Thane and Raigadh areas. We have added 1.50 lakh houses in FY18, and plan to progressively add 3 Lakh houses over the next 6-7 years,” Mathur said. The company hopes to complete FY18 with 250 CNG stations. It will add another 25 stations in FY19. It sells 30 Lakh kilo CNG per day and procures around 3 million standard cubic meters of gas per day. Besides the company is converting around 7,000 vehicles to CNG per month, up from 5,500 per month last year.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition