BG Group’s Transmission and Distribution (T&D) businesses increased customer numbers and volumes during 2010. The Group’s T&D interests are concentrated in Brazil and India.
 BG Group has a 60.1% holding in the Companhia de Gás de São Paulo (“Comgás”), the largest gas distributor in Brazil. Comgás serves natural gas to residential, industrial and commercial customers through a pipeline network of over 6 900 kilometres in the São Paulo concession in the industrial heartland of Brazil. The concession area has a population of over 29 million and covers 177 municipalities.
The concession is a 30-year franchise with a potential extension for a further 20 years. Comgás also supplies the natural gas vehicle market, gas-fired power stations and co-generation plants. The Group’s share of Comgás volumes in 2010 was 2.9 billion cubic metres per annum (bcma).
Following a contraction in the Brazilian economy in 2009, Brazil experienced a strong rebound in 2010 to record a GDP growth rate of around 8%.
This growth was reflected in an increase in Comgás volumes of 16% from 2009, supported by 12% sales volume growth in the industrial segment of the business. In 2010, Comgás served approximately 767 000 customers.
Comgás added 108 000 connections to Brazilian households during 2010. Growing the residential market is Comgás’ strategic focus, and it is anticipated that there will be steady growth in the customer base over the medium term, assisted by the improving competitiveness of natural gas compared with competing fuels.
BG Group has interests in two gas distribution companies: Gujarat Gas Company Limited (“GGCL”) in Surat and Bharuch regions of Gujarat state, and Mahanagar Gas Ltd (“MGL”) in the city of Mumbai and adjoining areas in Maharashtra state. Combined, the two companies distribute gas through approximately 6 500 kilometres of pipeline. BG Group’s Indian business interests are increasing the supply of natural gas to vehicles through their expansion of the compressed natural gas (CNG) network in those states.
Gujarat Gas Company Limited
BG Group has a controlling stake of 65.1% in GGCL, India’s largest private natural gas distribution company by sales volume. GGCL currently serves more than 310 000 residential, commercial and industrial customers through a pipeline network of over 3 500 kilometres and is steadily increasing its customer base. In addition, the company sells CNG for vehicles through 42 stations, supplying more than 130 000 vehicles in 2010.
Demand for gas in GGCL’s markets exceeds the allocated domestic gas supply. GGCL has countered this by securing short-term LNG and adding to its contracted long-term supply.
Mahanagar Gas Limited
BG Group has a 49.8% stake in MGL, India’s largest city gas distribution company by customer base. MGL owns and controls over 3 000 kilometres of pipeline in and around Mumbai. In 2010, MGL’s volumes grew by 10% to 646 million cubic metres (mmcm) (2009 587 mmcm).
MGL’s growth has been supported by expanding its CNG network to supply natural gas to vehicles and by adding to its customer base of approximately 490 000. This is an increase of almost 60 000 from 2009. MGL has been actively expanding its network beyond the city of Mumbai, with further expansion in the neighbouring towns of Taloja, Kalyan and Ambernath.
MGL’s growth is supported by a combination of long-term gas sale agreements and purchase of LNG on the spot market. In addition, MGL is linked to the major inter-state pipeline network through the City Gate Station at Mahape.
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