GAIL to invest Rs 5k cr for gas distribution network

09 May 2022

The Bengal Gas Company, a joint venture of GAIL and Greater Calcutta Gas Supply Corporation, is developing a City Gas Distribution Network (CGD) in the Kolkata Municipal Corporation area and parts of adjoining districts to provide eco-friendly and affordable greener fuel to CNG stations, PNG (piped natural gas) connections to domestic households, commercial and industrial units. The investment for the project is Rs 5,000 crore. 

GAIL’s pipeline network will facilitate the supply of natural gas to 38 lakh domestic households, and CNG to more than 600 stations and a large number of industrial and commercial establishments in major industrial cities and towns of 22 districts in the state within a few years.

Speaking at a panel discussion during the session on mining and allied industries at the Bengal Global Business Summit, M V Iyer, director (business development), GAIL (India) shared details about the company’s ongoing natural gas pipeline infrastructure projects in the state of West Bengal.

Mr Iyer highlighted that in West Bengal, GAIL (India) is also executing 846 km of pipeline in 15 districts across the state at an investment of around Rs 4,000 crore. Having completed the stretch of pipeline from Dobhi to Durgapur, gas supply to Matix Fertilizers was commenced by GAIL in August 2021. The 315 km long Durgapur to Haldia pipeline, including a spur line to Kolkata, is under construction and is planned to be completed by September 2023 in phases.

It was highlighted that the establishment of gas infrastructure and its utilisation by the industries, as well as the domestic and transportation sectors, will generate substantial revenue for the state government.