The state-run Gujarat State Petroleum Corporation Ltd (GSPC) will begin commercial production of natural gas from its gas fields in KG Basin off Andhra coast soon, Gujarat energy minister, Saurabh Patel informed at the Legislative Assembly on Tuesday.

Patel, who is also holding the finance portfolio in the Anandiben Patel government in Gujarat said, “GSPC has successfully accomplished the task of extracting gas at the depth of 15,000 feet from the sea bed in the KG basin. I am glad to inform this house that commercial production of gas is expected to start shortly.”

GSPC Gas Company, GGCL merger

He also informed that merger of GSPC’s city gas distribution arm GSPC Gas Company and Gujarat Gas Company Ltd (GGCL) will be completed by this calendar year. “As a result the company shall emerge as the biggest gas distribution company in the country,” he said.

Notably, GSPC Group had acquired majority stake in GGCL from the British Gas Group in October 2012.

Patel also informed that the state-run petroleum giant, GSPC would go for fund raising through public issue after the merger of the two distribution arms is over.

After the announcement in Patel’s Budget speech, GGCL shares hit an upper circuit on the Bombay Stock Exchange at Rs 495.35, up 20 per cent from its previous close.

Also, the finance minister announced to open new CNG stations in the state and adding 2.13 lakh domestic gas connections apart from the existing 9.50 lakh domestic gas connections spread across 17 districts in the state.

The state government has also made provision of Rs 150 crore for developing the new Liquified Natural Gas (LNG) terminal at Mundra in Kutch.

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