Govt launches 12th round of bidding for city gas distribution in NE states

The government on Thursday announced the 12th round of bidding for city gas distribution (CGD) to expand the gas networks to the last remaining states of Arunachal Pradesh, Meghalaya, Manipur, Nagaland and Sikkim and the Union Territories of Jammu & Kashmir and Ladakh.
 

From Friday, the Petroleum and Natural Gas Regulatory Board (PNGRB) will invite electronic bids for these areas, which can be submitted until 11 January 2024. PNGRB intends to finalise the award by March. The completion of the latest 12th round of bidding would see the successful awarding of CGD licences for almost the entire part of the country, except Mizoram. This is due to the model code of conduct kicking in.
 

Speaking at an event held to announce the launch, Petroleum and Natural Gas Minister Hardeep Singh Puri said the government is working on a programme to bring CGD to the Andaman and Nicobar Islands and Lakshadweep as well.

 

Natural gas is used for cooking by households as piped natural gas (PNG), and as an auto fuel as compressed natural gas (CNG).
 

Currently, there are 300 Geographical Areas authorised by PNGRB; industrial customers are consuming gas in 270 goegraphical areas (GAs). The total consumption by CGD is 35 million metric standard cubic metres per day (mmscmd), with the maximum being supplied towards compressed natural gas and industrial customers. Around 8-10 mmscmd is going to industrial (small industries) and commercial (hotels, etc.) customers, said PNGRB Chairman Anil Jain.
 

In the latest round, each state has been considered as a single GA, in a departure from the existing practice of classifying districts as separate GAs, PNGRB officials said. Demand from city gas is likely to rise to 150 mmscmd by 2028, they added.
 

While the largest share of demand originates from households now, fertilisers, power, and the industrial sector are set to become major sources of demand going forward, the government expects.
 

The government wants to raise the share of gas in its energy consumption mix to 15 per cent by 2030, up from the current 5.8 per cent. The country currently imports about 50 per cent of its gas requirements. India's energy demand is rising 4-5 per cent annually.
 

The government has pushed for the expansion of gas pipelines as an economical means of gas transport. PNGRB has also authorised around 32,203 kilometres of natural gas trunk pipelines in the country, out of which around 22,191 kilometres of pipelines are currently operational.