Assam power minister Pradyut Bordoloi at AGCL. File picture

Jorhat, Feb. 26: Compressed Natural Gas (CNG) will finally be available on a commercial scale in Assam.

The Assam Gas Company Limited (AGCL), which is celebrating its golden jubilee this year, is soon starting commercial production and distribution of CNG as vehicular fuel in Dibrugarh, along with installation of a CNG station.

“The estimated production capacity is 1,200 standard cubic metres per day per hour and the estimated cost is Rs 5 crore. Production is likely to start this financial year. This facility of CNG as vehicular fuel will be extended to the other towns of Upper Assam in later stages,” AGCL manager (marketing, personnel and administration) Chetia Phukan told The Telegraph.

CNG is a fossil fuel substitute for gasoline (petrol), diesel, or propane/LPG. Although its combustion does produce greenhouse gases, it is a cleaner alternative to those fuels, and is much safer than other fuels in the event of a spill (natural gas is lighter than air, and disperses quickly when released).

In the Northeast, Tripura already has vehicles running on CNG provided by Tripura Natural Gas Company Limited — a joint venture of Tripura Natural Gas Company Limited (TNGCL) and Indian Oil Corporation Limited (IOC). At present, 1,918 autorickshaws and 119 light motor vehicles are using CNG in Agartala at Rs 28 per kg. There are already two CNG filling stations in the town.

India has 1.08 million CNG vehicles on the roads. The Delhi government made it mandatory for all city buses and auto rickshaws to run on CNG in 2004 with the intention of reducing air pollution.

“To meet the growing demand for natural gas, the company is studying the possibility of connecting to the National Gas Grid for bringing 5/6 MMSCMD gas to boost the gas availability scenario in this region. Discussion for the purpose has already been initiated with GAIL India Limited. The grid has been proposed to store bulk gas for use by different gas companies in case of shortage or additional requirement,” Phukan said.

The company is also planning to utilise newly found gas in Nambor and Khoraghat areas and exploring the possibility of a joint venture with organisations engaged in similar natural gas related businesses for city gas distribution across the country.

It has also chalked out a project to lay a pipeline and develop other infrastructure in collaboration with other firms to transport natural gas from Numaligarh to Guwahati and beyond for use by industrial and commercial consumers along with city gas distribution in Guwahati. But this will depend upon availability of gas.

Wholly owned by the government of Assam with its registered office at Duliajan, the company has been in the business of collection, transportation and distribution of natural gas since 1965. It was also awarded the ISO 9001:2008 certificate by the Bureau of Indian Standards.

Its future plans include laying of pipelines and construction of infrastructure in various areas of Upper Assam to collect natural gas from gas fields and in supplying to the consumers and establishment of power plant with the use of gas available at Sonabarighat, Barak Valley.

At present, the company is engaged in transporting natural gas through its integrated pipeline network and well-established infrastructure to three different market segments — industrial, commercial and domestic — in the Northeast. It is also developing infrastructure in existing town gas grids to reach different segments of consumers.

Besides this, the company has started work for supplying piped gas to the residential colony of ONGCL at Cinnamara here.