“GGL has set ambitious targets for 2027”

Gujarat Gas Limited (GGL) is known for its innovation and sustainability initiatives in India’s energy sector. With over 33 years of experience, GGL has established itself as a leading city gas distribution (CGD) entity in India, covering an extensive area of 175,000 square km and serving customers across 44 districts, six states and one union territory (as of December 2023). The company’s extensive network and strong commitment to quality have propelled it to the forefront of the natural gas distribution industry. At a recent India Infrastructure conference, Yogiraj Navathe, executive vice president, operations, Gujarat Gas, discussed the company’s growth, new initiatives and future strategies.

Extensive network

GGL dominates the market in multiple segments. The company’s pipeline network spans over 39,000 km, covering Gujarat, Punjab, Madhya Pradesh, Rajasthan, Haryana, Maharashtra, and Dadra and Nagar Haveli. In addition, it operates around 808 compressed natural gas (CNG) stations, facilitating the adoption of clean-burning natural gas as a vehicle fuel. The company has over 2.11 million domestic PNG connections, 15,228 commercial connections and 4,420 industrial connections. In addition, it holds the largest market share in commercial (38 per cent), industrial (25 per cent) and domestic connections (17 per cent), and leads in gas distribution volumes (28 per cent) and CNG stations (14 per cent). A standout feature of GGL’s infrastructure is the 72 km-long Hazira-Ankleshwar Pipeline, for which it is the sole CGD authorised entity with transmission pipeline authorisation, playing a pivotal role in its natural gas distribution network.

Growth and expansion

In terms of growth, GGL has demonstrated a remarkable trajectory. Between 2006 and 2023, the company’s volume has grown at a CAGR of 6 per cent, while domestic connections have grown at a CAGR of 15 per cent. CNG stations have witnessed the highest growth, growing at a CAGR of 19 per cent, while the pipeline network has expanded by 16 per cent. Domestic connections have risen from 1.35 million in 2018-19 to 2.11 million in 2023-24, at a CAGR of 9.3 per cent, while industrial connections have grown at a relatively slower pace, increasing from 3,541 to 4,420 over the same period, at a CAGR of 4 per cent. The most significant growth has been observed in CNG stations, which have surged from 344 in 2018-19 to 808 in 2023- 24, reflecting a remarkable CAGR of 23.8 per cent. This growth has been fuelled by the increasing use of CNG as a vehicle fuel, indicating a shift towards a more sustainable transportation option. GGL’s pipeline network has witnessed consistent expansion, aiming to cover new areas. The total pipeline network length has seen significant growth, reaching 39,000 km in 2023- 24 (as of December 2023) from 23,245 km in 2018-19. This growth has been driven by an increase in both polyethylene (PE) and steel pipelines. PE pipelines have expanded to cover 36,000 km by December 2023, while steel pipelines have reached 3,000 km. In terms of sales volume across different sectors between 2018-19 and 2022-23, overall sales witnessed an 11 per cent CAGR, while CNG sales recorded the most significant growth at a CAGR of 19 per cent . Domestic and industrial sales also grew, at 9 per cent and 4 per cent CAGR respectively. GGL operates three types of CNG stations: owned, franchised and those operated by oil marketing companies (OMCs). Of the total CNG stations, 8 per cent are GGL owned, 12 per cent are franchised, and 80 per cent are OMC type, indicating GGL’s control over pricing and service standards at a significant portion of CNG stations in Gujarat.

While catering to diverse gas demands, the company employs liquefied natural gas (LNG) facilities, covering areas such as Vasai-Virar in Palghar district and Thane Rural GA in the absence of transmission pipeline connectivity nearby. GGL is serving approximately 50,000 D-PNG customers in the areas of Vasai-Virar-Nala Sopara. In addition, GGL utilises a distribution compression system facility to deliver gas in remote areas with low population density. With ongoing projects such as an 84 km steel pipeline connecting Ratlam from Makarwan (near Ujjain), GGL has ensured gas supply to Ujjain-Dewas-Indore and Jhabua-Banswara-Ratlam-Dungarpur GAs, further extending its reach and strengthening its position in the natural gas distribution sector.

Environmental responsibility

GGL has gained recognition for its exceptional performance and commitment across various sectors. Its dedication to environmental responsibility is evident in its robust corporate social responsibility programme. The company’s efforts include providing free gas stoves and connections to underprivileged households, and reducing health risks associated with traditional cooking fuels. It also focuses on skill development for local youth, empowering communities for long-term sustainability.

Innovation drive

GGL’s dedication to safety and operational efficiency is evident in recent initiatives, including the establishment of a dedicated satellite LNG station in Alang to facilitate the switch to piped natural gas (PNG) for shipbreaking. This move has already connected 37 industrial and two commercial customers, highlighting the increasing acceptance of PNG in the region. By pioneering the use of PNG for shipbreaking, GGL is setting a new benchmark for safety and efficiency in this vital industry. GGL’s commitment to innovation and efficiency is underscored by its pilot project utilising natural gas for shipbreaking at Alang, India’s largest shipbreaking yard. Launched in February 2021, this initiative successfully established the use of natural gas to cut even 60 mm thick MS plates, replacing LPG. It addresses logistical challenges and reduces on-site risks, showcasing GGL’s commitment to progress and sustainable practices. Automation initiatives are driving advancements in energy management by introducing smart meters in residences in GIFT city. These advanced meters offer improved accuracy in energy use readings, enable remote monitoring for better issue identification and eliminate estimated billing, thereby ensuring greater consistency and transparency in billing. With 1,000 smart meters in the first phase natural gas connections already established in GIFT City buildings, GGL is poised to meet the anticipated demand for smart prepaid meters as the city continues to grow. Projections suggest that around 200,000 residences will be built within the next five to seven years, potentially requiring smart meter installations. GGL has also made significant strides in rural outreach, benefitting 1,133 villages with PNG connections including 54 coastal and 146 tribal villages. This initiative focuses on underserved communities in coastal and tribal areas, not only enhancing their quality of life but also promoting environmental sustainability by replacing traditional fuels. To fulfil its commitment to rural outreach, GGL has implemented the “Enhanced Rural Reach” programme, aiming to provide PNG to many more villages, including tribal and coastal communities. Furthermore, GGL’s operational flexibility is evident in its ability to draw natural gas from multiple sources within a single GA, optimising its distribution network for efficiency.

Future prospects

Looking ahead, GGL has set ambitious targets for 2027, aiming to increase its domestic connections to 2.5 million, which translates to approximately 250,000 new connections added annually. The industrial and commercial sectors are also expected to see significant growth, with projections of around 300 industrial and 1,200 commercial new connections each year till 2027. In the CNG segment, the company aims to cross the 1,000 stations mark, with an annual expansion target of roughly 100 stations. Moreover, it is planning to expand its pipeline network to approximately 50,000 km with an annual expansion target of 3,500 km