Bombay Stock Exchange-listed city gas distribution company Indraprastha Gas Limited is mulling to spread its footprint into African countries. The gas utility company officials visited Trinidad & Tobago and Nigeria to study market dynamics.
“We are trying to participate in all free and fair discussions wherever they (African countries) want our advice or guidance. We would like to expand this model. IGL has been a role model for any CGD business,” IGL managing director M Ravindran said in an interview with Financial Chronicle.
“We have visited and tried to enter into a dialogue and understand their lookout. There have to be many policy changes that they have to make at their end such as subsidy for gas and kit manufacture.
Gail, one of IGL’s promoters, has an office in Egypt. We do interact on several proposals from Egypt also,” Ravindran said.
IGL’s promoters – Gail and BPCL – have spread business portfolios to several countries offering an edge to this city gas distribution company to enter into talks with overseas players. “Various business opportunities are coming up to understand the markets there (overseas). Frequent delegations come and they show interest to capitalise on gas reserves in their countries. Our people have already visited Trinidad & Tobago.
This time, our team has gone to Nigeria. We are trying to understand the business model there and what are the pricing policies. Every country has unique model of doing business. We are trying to understand dynamics of pricing policy,” Ravindran said.
At present, IGL sees an annual volume growth of 60-70 per cent from industrial customers, 15-16 per cent from CNG users and 40-50 per cent from domestic cooking gas buyers. Now, the gas utility supplies nearly 3.4 mmscmd of gas that is about 2.7 mmscmd of APM gas and remaining from imported and spot market.
“We have a mix of 70-75 per cent of APM and 18-19 per cent of LNG. Remaining 1-2 per cent is sourced from spot market. We do not want to increase the spot purchases and put burden on consumers. But we will have to live with 2-2.5 per cent of spot gas in the long run also. We are trying to source long-term gas from our promoters – BPCL and Gail,” Ravindran said.
“We are trying to participate in all free and fair discussions wherever they (African countries) want our advice or guidance. We would like to expand this model. IGL has been a role model for any CGD business,” IGL managing director M Ravindran said in an interview with Financial Chronicle.
“We have visited and tried to enter into a dialogue and understand their lookout. There have to be many policy changes that they have to make at their end such as subsidy for gas and kit manufacture.
Gail, one of IGL’s promoters, has an office in Egypt. We do interact on several proposals from Egypt also,” Ravindran said.
IGL’s promoters – Gail and BPCL – have spread business portfolios to several countries offering an edge to this city gas distribution company to enter into talks with overseas players. “Various business opportunities are coming up to understand the markets there (overseas). Frequent delegations come and they show interest to capitalise on gas reserves in their countries. Our people have already visited Trinidad & Tobago.
This time, our team has gone to Nigeria. We are trying to understand the business model there and what are the pricing policies. Every country has unique model of doing business. We are trying to understand dynamics of pricing policy,” Ravindran said.
At present, IGL sees an annual volume growth of 60-70 per cent from industrial customers, 15-16 per cent from CNG users and 40-50 per cent from domestic cooking gas buyers. Now, the gas utility supplies nearly 3.4 mmscmd of gas that is about 2.7 mmscmd of APM gas and remaining from imported and spot market.
“We have a mix of 70-75 per cent of APM and 18-19 per cent of LNG. Remaining 1-2 per cent is sourced from spot market. We do not want to increase the spot purchases and put burden on consumers. But we will have to live with 2-2.5 per cent of spot gas in the long run also. We are trying to source long-term gas from our promoters – BPCL and Gail,” Ravindran said.
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