New Delhi, India – March 4, 2024: The Petroleum and Natural Gas Regulatory Board (PNGRB) celebrated a momentous occasion today with the concluding ceremony of the 12th City Gas Distribution (CGD) Bidding Round. This event marks a significant stride in achieving complete national coverage for CGD networks, bringing India closer to its goal of providing clean and reliable natural gas to all corners of the country.
The ceremony was graced by the presence of Shri Hardeep Singh Puri, Minister for Petroleum and Natural Gas & Housing and Urban Affairs. Minister Puri commended the collaborative efforts of the Ministry of Petroleum and Natural Gas (MoPNG), PNGRB, and the participating companies in building a robust natural gas infrastructure. He unveiled the government’s ambitious plan to invest $67 billion in the natural gas sector over the next six years. This substantial investment underscores the government’s commitment to making natural gas a readily available and affordable fuel source for consumers nationwide. Additionally, Minister Puri highlighted the recent policy and regulatory initiatives undertaken by the government to promote the widespread adoption of natural gas within the country.
Minister Puri projected a significant rise in natural gas consumption by 2030, estimating a threefold increase from 185 MMSCMD to 500 MMSCMD. This projected growth is not only expected to stimulate the development of related industries like fertilizer and petrochemicals but also create new employment opportunities throughout the supply chain. Moreover, the widespread adoption of natural gas, a cleaner burning fuel compared to traditional options like coal, is expected to contribute significantly to environmental conservation efforts by reducing air pollution and greenhouse gas emissions.
The 12th CGD Bidding Round offered a total of eight Geographical Areas, encompassing six North-Eastern states – Arunachal Pradesh, Meghalaya, Manipur, Nagaland, Sikkim, and Mizoram – and two Union Territories – Jammu & Kashmir and Ladakh. This round significantly expands the reach of the CGD network, covering 103 districts and bringing the total authorized network to encompass almost the entire country, excluding islands.
Dr Anil Kumar Jain, Chairperson of PNGRB, emphasized the board’s unwavering commitment to establishing a robust and sustainable gas infrastructure throughout India. He highlighted the strategic importance of the 12th bidding round, specifically targeting states and union territories with delicate ecosystems like the Northeast. By providing cleaner fuel options in these regions, the initiative aims to strike a balance between energy security and environmental protection. Additionally, Dr Jain mentioned the immense potential of CNG in these regions and the crucial role the North Eastern Gas Grid and Gurdaspur-Jammu Natural Gas Pipeline, both recently authorized projects, will play in facilitating the development of a comprehensive national gas network.
Shri Tarun Kapoor, Advisor to the Prime Minister, acknowledged the remarkable progress achieved through the CGD bidding rounds. He recognized the challenges associated with developing infrastructure in the newly authorized Geographical Areas, which will require higher investments due to geographical factors. He also stressed the need further to accelerate the growth of PNG and CNG connections to ensure wider adoption of natural gas as a cleaner fuel source. Additionally, Shri Kapoor highlighted the potential of exploring natural gas blending with hydrogen or compressed biogas, paving the way for a more efficient and environmentally friendly energy ecosystem.
The 12th CGD Bidding Round signifies a turning point in India’s journey towards a cleaner and more sustainable future. With the completion of this round, the entire nation is now authorized for CGD network development. This opens doors to wider access to clean cooking fuel, support for industrial and commercial sectors, and cleaner transportation options. This achievement aligns with India’s vision of transitioning towards a gas-based economy and fostering environmental responsibility. By embracing innovation and collaboration, India is poised to make significant strides in achieving its energy security and environmental goals.
