Gujarat Gas Limited Q3 FY ’24 Earnings Conference Call February 15, 2024
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We have achieved highest highest-ever CNG volume of 2.78 MMSCMD in Q3, which is 14% higher than Q3 of the previous financial year.
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We have introduced smart meters for domestic customers at GIFT City, Gandhinagar.
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We have set up new CNG stations to promote the use of environment-friendly fuel. We have also achieved the injection of biogas into the GGL system. We have kick-started the operation of taking the supply of biogas into the GGL system at Sanchore, Jalore, and Sirohi.
CNG business:
With better availability of supplies, new CNG model launches, strengthening of CNG infrastructure, and reduction in CNG prices, the CNG penetration is expected to grow from the present 11% in 2023 to 18% in 2027.
CNG will be the second most preferred fuel in the year 2027.
FDODO (Full Dealer-Operated and Dealer-Owned scheme):
This will cover the entire market of the Gujarat gas. If I talk about Gujarat, we have received a major or massive response to this scheme. More than 700 online applications were submitted by enthusiastic potential partners. GGL is planning to operationalize 200 plus CNG stations under this scheme over 2 years.
We are expecting 15% to 20% growth in the present CNG volume on a year-on-year basis. This scheme, FDODO, is dedicated to the entrepreneurial spirit of the country and we are creating a startup opportunity in the energy sector for even small entrepreneurs. FDODO scheme, where it is allows dealers to invest in and operate compressed natural gas stations, this innovative approach empowers local entrepreneurs and fosters economic growth while simultaneously expanding GGL’s city gas distribution network.
We have signed a MoU with HPCL, which will help us in the FDODO scheme implementation with the OMC. We are going for NFR, that is Non-Fuel Revenue, through selling lubricants at our CNG stations also.
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We may explore liquid business opportunities with OMCs also. We are starting with the HPCL. Sooner we will sign with other OMCs also. This will allow us to have mother stations in remote areas also. And this will, of course, give us a pan-India reach for developing our transportation business.
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We are also working on developing hydrogen and CBG transportation capability for the company. For that, we have signed a MoU with FEV, which is the Field Evolution Group of Germany. This group is a globally leading engineering provider in the automotive industry and an internationally recognized leader in innovation across different sectors and industries. But this will help us have leverage in developing hydrogen and CBG-based automotive fuel businesses.
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GGL is working towards achieving operational excellence and customer delight through digital transformation. For that, we have signed an MoU with a Polish company called AIUT Technologies, will help us develop such strength in digital transformation across the business.
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