The company was incorporated on May 8, 1995 as a public limited company, pursuant to a joint venture agreement entered into between GAIL and British Gas plc on December 6, 1994, for the purposes of undertaking the business of city distribution and marketing of natural gas in in Mumbai, its Adjoining Areas and the Raigad district in the state of Maharashtra, India or at such other places as may be decided by their Company from time to time. The Company received a certificate of commencement of business on July 4, 1995. The Company has 11 members as on the date of this Red Herring Prospectus. The Company is engaged in the business of distribution of natural gas viz., compressed natural gas and piped natural gas.
Mahanagar Gas is one of the largest city gas distribution (‘CGD’) companies in India. The company has more than 20 years of experience in supplying natural gas in Mumbai and is presently the sole authorized distributor of compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai, its Adjoining Areas and the Raigad district in the state of Maharashtra, India. The company is promoted by GAIL and BGAPH, each of who holds 45.00% of the Equity Shares. GAIL is a Maharatna public sector undertaking and the largest natural gas transmission company in India. BGAPH is headquartered in Singapore and is a part of the Shell Group, an international exploration and production and LNG group of companies. On February 15, 2016, Royal Dutch Shell plc (‘Shell’) completed the acquisition of BG Group plc (now known as BG Group Limited) and its subsidiaries, and accordingly Shell has become the ultimate holding company of all the BG Group companies, including that of BGAPH. The company distributes CNG for use in motor vehicles and PNG for domestic household use as well as for commercial and industrial use.
Business area of the company
For their industrial and commercial PNG consumers, the company source regasified liquefied natural gas (‘RLNG’) from a number of sources, both on term and spot basis. The price at which they sell natural gas to their customers is not regulated and they are able to pass on an increase in the cost of natural gas to their customers. The company distribute natural gas through an extensive CGD network of pipelines, for which they have the exclusive authorisation to lay, build, expand and operate the CGD network in accordance with the Petroleum and Natural Gas Regulatory Board (Exclusivity for City or Local Natural Gas Distribution Network) Regulations, 2008 (the ‘PNGRB Regulations’) in Mumbai until 2020, its Adjoining Areas until 2030 and the Raigad district until 2040 (the ‘Infrastructure Exclusivity’).
Major events and milestones
Awards, achievements and certifications