New Delhi : State-run gas utility GAIL India Ltd on Sunday said it has made available natural gas from alternate sources to industries in Gujarat whose domestic fuel allocation was snapped to give fuel for CNG sector.

The Oil Ministry had directed GAIL to cut domestic gas supplies, called APM gas, to non-priority sector so that cheaper fuel can be made available for supply as compressed natural gas (CNG) to automobiles and piped cooking gas (PNG) to households in cities.

“In pursuance to the directives issued by the Ministry of Petroleum and Natural Gas, GAIL has informed industries in South Gujarat about the restriction in supply of natural gas to non-core sector in lieu of the supply of Administered Pricing Mechanism (APM) Gas to city gas distribution (CGD) sector for use of natural gas in domestic households (PNG) and transport sector (CNG) in the larger interest of the people,” it said.

Considering the requirement of gas to other industries, GAIL has offered to supply equivalent amount of alternate gas, possibly imported LNG, so that the production of such industries do not suffer, the company said in a statement here.

“Some of the affected parties have already availed GAIL’s offer to utilise alternative gas in view of the reduced quantity of APM gas,” it said.

The additional gas being supplied to domestic and transport sector will enable the Government to reduce subsidy burden on account of LPG and will result in substantial saving in outgo of foreign exchange for import of LPG as well as crude oil.

“Based on the ministry directive, supplies of APM Gas to non-priority sector customers across the country are being curtailed. The cut envisaged to non priority sector customers is around 3 to 4 million standard cubic meters per day of natural gas, while the cut to South Gujarat customers would be to the tune of 0.3 to 0.4 mmscmd,” GAIL said.

The reallocation of this natural gas to CGD entities will enable cooking gas supply to more than 6.0 lakh households. Presently, more than 8 mmscmd of natural gas is being supplied to CNG and PNG sector which includes more than 2 mmscmd supplies to CGD entities in Gujarat.

“Pursuant to ministry directives, GAIL has informed all the affected customers regarding cut in supplies of the APM gas from the non-core sector which shall be effective from September 16, 2014,” it said.

Due to this, advance information to the non-priority sector customers was provided and they have been advised to take alternate measures for sourcing natural gas. GAIL has offered to supply alternate gas to each of the customer to compensate the shortfall which may be availed for continuous operation by these industries. “There are about 30 customers in South Gujarat, getting the APM gas. None of the customers will suffer due to non- availability of natural gas,” it said.

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