The company will develop infrastructure for delivering retail CNG to automobiles and piped gas supply to households and industries
Torrent Gas has announced an investment of INR50bn ($680m) to set up a city gas distribution network in Chennai in the southern Indian state of Tamil Nadu.
In this connection, the company has inked a memorandum of understanding (MoU) with the Tamil Nadu government.
Torrent Gas plans to develop infrastructure for delivering retail compressed natural gas (CNG) to automobiles and piped gas supply to residences and industries.
The company, which is a part of Indian conglomerate Torrent Group, will build pipelines and develop other infrastructure across the Chennai and Tiruvallur districts.
The pipeline network, which will span an area of 3,569km2, will provide piped natural gas (PNG) connections to residences, industries, and commercial establishments, Press Trust of India reported.
Besides, the company will establish the necessary infrastructure for distributing CNG to automobiles.
Torrent Gas expects its project to provide direct and indirect employment to over 5,000 people.
Under a phase 1 plan of the roll-out of its infrastructure, the company will look to open more than 30 CNG stations across Chennai and Tiruvallur in the fourth quarter of the current financial year.
Torrent Gas director Jinal Mehta said: “This investment of Rs 5,000 crore by Torrent Gas in development of CGD infrastructure is expected to have a major impact on the socio-economic development of the region by attracting fresh investment in the state.”
The company has city gas distribution footprint across 16 geographical regions spread across 32 districts in seven states and one union territory in India.
In November, the Indian Ministry of Petroleum and Natural Gas (MoPNG) has signed MoUs with oil and gas marketing companies and technology providers for setting up 900 compressed biogas (CBG) projects in the country.