12-10-2023 : The Indian government has launched a significant step in expanding the availability of natural gas throughout the country, as it initiated the bidding process for licenses to establish Compressed Natural Gas (CNG) retailing in seven geographical areas. These areas primarily encompass regions in the North East and the Union Territory of Jammu & Kashmir, which currently lack widespread access to natural gas. The Petroleum and Natural Gas Regulatory Board (PNGRB) made eight geographical areas available for bidding as part of the 12th city gas distribution (CGD) bidding round. The purpose of this initiative is to make CNG accessible for use in automobiles, as well as to provide natural gas for household kitchens and industrial purposes.
The geographical areas included in this round of bidding encompass Arunachal Pradesh, Meghalaya, Manipur, Nagaland, Sikkim, and the Union Territory of Jammu & Kashmir and Ladakh. These regions are set to benefit from the expansion of the city gas distribution network, further advancing the availability of CNG and natural gas, thus increasing the country’s energy accessibility. According to India’s Oil Minister, Hardeep Singh Puri, this initiative brings natural gas coverage to regions that were previously underserved or not served at all.
Presently, the PNGRB has authorized approximately 300 geographical areas, covering approximately 88% of India’s total geographical area and 98% of its population. Upon successful completion of this bidding round, India will have achieved almost complete geographical coverage and expanded access to natural gas. There are only a few regions, including Mizoram, Andaman and Nicobar Islands, and Lakshadweep, where further development is required.
The city gas sector in India plays a vital role, as it consumes around 35 million standard cubic meters of gas daily, accounting for approximately one-fourth of the total gas consumption in the country. As a result, the expansion of CNG retailing and natural gas accessibility is a critical move for energy infrastructure development and economic growth in underserved regions. In the previous 11th and 11A CGD bidding rounds, the PNGRB authorized 67 geographical areas for the development of the city gas distribution network, marking significant progress in expanding access to natural gas throughout the nation.