Indian Oil Corporation Limited inaugurates domestic piped natural gas connection in Salem

The Indian Oil Corporation Limited (IOCL) inaugurated its first liquified natural gas (LNG) hub at Mohan Nagar in Salem as part of the city gas distribution (CGD) geographical area and also inaugurated the first domestic piped natural gas (D-PNG) connection on Tuesday.

The Indian Oil Corporation Limited (IOCL) inaugurated its first liquified natural gas (LNG) hub at Mohan Nagar in Salem as part of the city gas distribution (CGD) geographical area and also inaugurated the first domestic piped natural gas (D-PNG) connection on Tuesday.

Natural gas is commonly referred to as green fuel as it produces very less hydrocarbon emissions than LPG, diesel, and petrol, is cheaper than other conventional fuels, and economical with more mileage per kg of filling. The Indian government has set a target to raise the share of natural gas in the energy mix to 15% in 2030 from the current 6.7%. One of the main steps towards achieving this target is the expansion of the CGD network, which will cover 96% of India’s population and 86% of its geographical area for distributing D-PNG to meet domestic, industrial, and commercial needs and CNG to vehicles in place of conventional fuels.

The IOCL Director for Pipelines, D.S. Nanaware, inaugurated the unloading of the first LNG trailer at the LNG hub and simultaneously started the operation of the 6.6-km natural gas steel network pipeline by opening the mainline valve inside the LNG hub. The first online compressed natural gas (CNG) station in Salem district has also been inaugurated at the IOCL Aavin retail outlet, where CNG will be available to the public on a continuous basis through this pipeline.

The first D-PNG connection for Salem City was lighted at the residence of the Salem Steel Plant Executive Director. Speaking at the function, Mr. Nanaware said that Salem, celebrated for its business in silver, steel, mangoes, and textiles, will now enjoy the uninterrupted supply of natural gas to meet its bustling demand in industries, domestic, and transportation sectors. IOCL has been authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB) to establish and expand the city gas distribution network in the five geographical areas in Tamil Nadu comprising Coimbatore, Salem, Madurai, Virudhunagar, Theni, Thoothukudi, Tirunelveli, Kanyakumari, Krishnagiri, and Dharmapuri districts. Through the CGD network, IOCL is planning to establish 86.55 lakh D-PNG connections to residences and about 1,084 CNG for filling gas to vehicles like three-wheelers and four-wheelers in these districts, Mr. Nanaware added.

“For the benefit of the public, the CNG price in Salem district has been reduced from ₹ 85 a kg to ₹ 80 a kg. The current price of D-PNG for Salem residences is fixed at ₹ 66 a kg. The IOCL has planned for around 3.4 lakh D-PNG connections in Salem City over a period of eight years from now,” Mr. Nanaware added.