The Petroleum and Natural Gas Regulatory Board (PNGRB), the nodal body for issuing of license and authorisation for city gas distribution (CGD) network is looking at finalizing the tariff guidelines for open access and City Gas Distribution network shortly.
Speaking on the sidelines of a round table meet organised by Confederation of Indian Industry, (CII) L. Mansingh, chairman, PNGRB said, “ PNGRB has finalized the tariff guidelines for open access which is to be notified shortly and communicated to all the stakeholders.”
The existing 8000 kms pipeline network across the country as well as the additional 8000 kms of pipeline, including the regional grids being laid, will be declared as the national or trunk pipeline through which the open access will be facilitated, Mansingh said.
PNGRB plans to fix the tariff and lay the condition for the open access, all of which at present is in the negotiation stage, he informed.
At present there is no regulated tariff mechanism for existing pipelines in the country.
The regulations will help facilitate an orderly growth of CGD networks in the country and will play a crucial role in increasing the competition in the natural gas marketing and adoption of uniform safety standards throughout the country for the benefit of the consumers, said Singh
Acccording to the policy of the government all the trunk pipelines, after meeting its dedicated and contract supplies would have to keep 33.5% of its capacities for open access.
The non- contracted suppliers would require PNGRB's approval to avail open access facilities.
With the significant gas finding in the Krishna-Godavari basin together with the GPSC's finding and the ONGC finding scheduled round the corner, the availability of gas has significantly increased inside the country, generating much interest for CGD networks which will be catering to the domestic consumers.
According to BS Negi, member PNGRB, there has been 71 responses against an expression of interest (EOI) floated in 2008 for city gas distribution.
Seven geographical areas are being offered by February 2009, and six more GA are due for bids in March this year and another eight in April.
At present city gas distribution covers around 25 geographical locations (GA), which is expected to go up to more than 80 in next three years, said Negi.
Of India's current total gas consumption of 107 million standard cubic meters per day, consumption of gas through CGD network is only 11.35 million standard cubic meters per day (mmscmd). But considering the gas finds and the network being developed, city gas consumption is expected to increase many folds and CGD too also, Negi said.
West Bengal and the eastern region, however had been lacking development in CGD network compared to the kind of development shown in Gujarat, Andhra Pradesh.
The CGD network in West Bengal can be connected either with the GEECL's Asansol-Kolkata pipeline,or Essar Oil Corporation's pipeline at present.
“We hope to play a part in filling the gap, PNGRB has even asked the West Bengal government for single window clearance mechanism.”
