GAIL of India Denies Stopping Gas Supply to HCGDL

After several media reported that GAIL of India has stopped gas supply to Haryana City Gas Distribution, the company on Thursday denied the reports and revealed in a statement that it has not stopped supply of natural gas to HCGDL and is even currently supplying 0.025 MMSCMD of natural gas (RLNG) to HCGDL.

The company was also being supplied 0.25 MMSCMD of natural gas by Indraprastha Gas Limited (IGL), under Administered Pricing Mechanism (APM) through GAIL pipeline network.

However, on 17th May 2013, IGL informed GAIL that it would not be procuring any natural gas under APM, to be supplied to HCGDL from 6 AM on 18th May 2013, till further notice as HCGDL has stopped making payments.

The APM gas supply to HCGDL has been stopped from 20th May 2013. However, GAIL continues to supply 0.025 MMSCMD RLNG for which it has a separate contract with HCGDL.

GAIL has not stopped supply of natural gas to HCGDL but only restricted it to the extent of stopping supply of APM gas as per the requirements of IGL, GAIL said in a statement.

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LNG World News Staff, May 24, 2013