The Reliance Industries Ltd is planning to venture into city gas distribution business in Maharashtra and Andhra Pradesh. It has identified eight cities in these two states where it is planning to supply natural gas to households, industries and automobiles.
The company will invest Rs 5,000 crore on a city gas distribution project. The company will take up the city gas distribution network project in Vishakhapatnam, Kakinada, Vijayawada, Nalgonda and Hyderabad in Andhra Pradesh, and Solapur, Pune and Thane in Maharashtra.
The natural gas will be sourced from Dhirubhai-1 and Dhirubhai-3 discoveries in KG-DWN-98/3 block off the Andhra coast which would produce 40 million standard cubic meters per day (mmscmd) of gas from mid-2008.
RIL is planning to supply 8 mmscmd gas per day, each cities share would be -- Vishakhapatnam (1 mmscmd), Kakinada (0.4 mmscmd), Vijayawada (0.8 mmscmd), Nalgonda (0.3 mmscmd), Hyderabad (1.2 mmscmd), Solapur (0.4 mmscmd), Pune (1 mmscmd) and Thane (3 mmscmd).