BG Group’s T&D assets added customers, yet experienced lower volumes due to the economic slowdown.
BG Group’s Transmission and Distribution (T&D) businesses increased their customer numbers during 2009. Volumes, however, were lower reflecting weaker demand and lower gas availability. In Brazil, BG Group’s share of Comgás volumes was 2.5 billion cubic metres per annum (bcma) and, in India, BG Group’s share of volumes from its two distribution businesses was 1.0 bcma.
 At the end of 2009, Comgás (BG Group 60.1%) was serving around 703 000 customers in the São Paulo concession area. The concession area has a population of over 29 million and Comgás anticipates continued growth opportunities in the future. The Comgás network was extended by 553 kilometres during 2009.
Comgás’ sales volumes fell 20% to 4.2 bcma during 2009, principally due to decreases in the industrial, power and natural gas vehicles segments. Industrial demand was weaker due to lower economic activity in Brazil. In the natural gas vehicles segment, increased competition resulted in lower volumes and, in the power segment, higher hydro-electric generation resulted in lower gas-fired power demand. The domestic segment saw a 6% increase in volumes helped by an expansion of the residential customer base of around 72 000.
In May, Comgás had its second five-year cycle regulatory review which established the new margins for 2009-2014. The review sets assumptions for the cost of gas and the amount that Comgás should recover from customers for the period 2009-2010. The review resulted in an overall price reduction to end customers varying on average from 10-20%. As a result, the competitiveness of natural gas compared with competing fuels is expected to improve.
 India Gujarat Gas Company Limited (“GGCL”) (BG Group 65.12%) celebrated 20 years in business in 2009. Its 2009 distribution sales volumes were 1 091 million cubic metres (mmcm) (2008 1 093 mmcm). Despite this slight decline in volumes due to lower gas availability, GGCL was able to grow revenues and profits through optimisation of its sales mix to markets. Demand for gas in the company’s markets exceeds long-term contracted supply and GGCL continues to contract additional long-term gas to enable growth. GGCL has an agreement with GAIL (India) Limited for the long-term purchase of up to 2.13 mmscmd of gas from the Panna/Mukta and Tapti fields and, during 2009, 142mmscmof short-term LNG has made up the shortfall in gas supply. The company continued to expand its network and customer base, increasing its customers to around 389 000.
Mahanagar Gas Limited (“MGL”) (BG Group 49.75%), the gas distribution business in Mumbai, saw2009 volumes rise 5.8% to 587mmcm. Growth was underpinned by an addition of eight new compressed natural gas (CNG) outlets bringing the total to 139, the conversion of public transport buses to CNG, and a major expansion of its network taking gas to the Navi Mumbai area, increasing the number of customers to around 423 000.
To support this volume growth, MGL has signed long-term gas supply agreements for additional gas from the RIL D-6 and ONGC C Series fields and framework agreements to source spot LNG. The second City Gate Station at Mahape was commissioned in September linking MGL to the national pipeline network, providing access to all the major sources of gas, enhancing security of supply.
Formal authorisation was received for existing and expansion areas of MGL, to build and operate its gas supply network in accordance with the Petroleum and Natural Gas Regulatory Act and applicable regulations.
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