GAIL India has started work on its city gas distribution (CDG) project in Bhubaneswar, state capital of Odisha, which will deliver gas imported as LNG for transport, industries and household use.
Union minister of state for petroleum and natural gas Dharmendra Pradhan launched the project at a ceremony in the city on Saturday. Mr Pradhan described the project as an important step towards developing India as a gas-based economy. It will link eastern India to the national natural gas grid.
Last month, India imported nearly 1.6 million tonnes (mt) of LNG. In 2016, it imported 20mt, having imported less than 15mt in 2015. GAIL, India’s state-owned natural gas processing and distribution company, is investing US$856.8 million in the Urja Ganga and CDG phases of the Odisha project.
The CDG will supply 500,000 households and deliver compressed natural gas (CNG) to fuel 150,000 vehicles. The Pradhan Mantri Urja Ganga pipeline will deliver the gas to Odisha, across five Indian states.
GAIL says fertiliser companies, power firms, refineries and steel manufacturers will use gas for power. The company plans to expand its gas pipeline network to 18,000km within five years. It will also invest in CNG fuelling stations.