Exclusivity in city gas distribution network to affect competition

City gas distribution (CGD) networks and pipelines for carrying natural gas and petroleum are essential facilities. Laying of CGD network is authorised by the Petroleum and Natural Gas Board (PNGB) under the Petroleum and Natural Gas Regulatory Board (PNGRB) Act. The CGD network developer enjoys natural monopoly due to the cost of creating CGD network/pipelines, usage, availability of space and various factors. Person laying CGD network is entitled to exclusive use of the network for a specified period. 

Section 20(4) of the PNGRB Act empowers the PNGB to decide on the period of exclusivity to lay, build, operate or expand