Govt roadmap to expand city gas network in the country

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New Delhi, Apr 1 (UNI) To expand city or local natural gas distribution networks (CGD) in the country the government today notified the regulations for authorising companies to execute such projects.

The Petroleum and Natural Gas Regulatory Board (PNGRB) also notified the determination of network tariff for CGD networks and compression charge for CNG; and exclusivity for CGD networks.

The regulations are available on PNGRB's web-site at www.pngrb The notification of these regulations pave the way for the development of CGD networks in the country.

At the time of the constitution of the Board, the Petroleum Ministry had transferred a number of applications of different entities pending with them for the development of CGD networks to the Board for necessary action.

These entities will need to apply to the Board for authorisation for development of CGD networks in line with the procedure specified in the notified regulations.

The regulations authorising entities to lay, build, operate or expand city or local natural gas distribution networks provide for selection of an entity through an open bidding process for laying, building, operating or expanding a CGD network.

The specified procedure is objective and transparent for the development of such networks, the ministry said in a statement.

The regulations specify the minimum eligibility criteria for an entity to participate in the bidding process.

The open bidding is in respect of four parameters with different weightages, --lowness of present value of unit network tariff over the economic life of the project(40 per cent); lowness of present value of the compression charge for CNG over the economic life of the project (10 per cent); highness of the present value of inch-kilometer of steel pipelines proposed to be laid during the period of exclusivity in terms of exemption from the purview of the common carrier or contract carrier(20 per cent).

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