প্রথম পাতা

Petroleum and Natural Gas Regulatory Board starts PNG connections in 124 districts in 14 states in 10th CGD bidding round

Ambarnath Bhattacharya, abptakmaa, Kolkata, 8th January 2019 :       Share of Natural Gas in India’s energy basket is 6.2% as against 23.4% globally. In India, in the state of Gujarat itself, it is 25%. The country aims to achieve share of Natural Gas in our energy basket from 6.2% to 15% by 2030. Natural Gas is an environment friendly fuel as compared with coal and other liquid fossil fuels. Industry is thus shifting from pet‐coke, furnace oil and coal to natural gas, which reduces CO2 emissions significantly. Similarly, shift in use from diesel and petrol to Compressed Natural Gas (CNG) will reduce CO2 emissions. In India, a very large number of households still depend upon wood, crop wastes, dung cakes for kitchen fuel. These increase household pollution, severely impacting the health of women and children in particular.

The Hon’ble Prime Minister made a commitment in COP21 Paris Convention in December 2015 that by 2030, India would reduce carbon emissions by 33% of 2005 level. Overall, Natural Gas as domestic kitchen fuel, fuel for transport sector as well as for industrial and commercial units, can play a significant role in reducing carbon emission.

Natural Gas (as CNG) is cheaper by 60% and 45% as compared to petrol and diesel respectively. Domestic Piped Natural Gas (PNG) is cheaper by 40% as compared to market‐priced LPG and almost matches with the price of subsidized LPG. PNG is safer than LPG because PNG is lighter than air. In case of any leak, it dissipates immediately in the air. The flow of PNG can be easily controlled by various safety checks/ valves installed in the system. As PNG is supplied through pipe, it is an uninterrupted supply round‐the‐clock. There is no need to store cylinders in the kitchen and thus it is space economical. Existing LPG appliances with minor modification can be used for PNG. For these reasons, emphasising is given to the use of PNG as a preferred domestic fuel.

Status of CGD Infrastructure

September, 2018

 Domestic PNG Connections – 46,74,168

 Commercial PNG Connections – 26,468

 Industrial PNG Connections – 8,114

 Total PNG Connections – 47,08,750

 CNG Stations – 1,450

 Steel Pipeline Infrastructure (Inch‐km) – 46,755

MDPE Pipeline Infrastructure (Inch‐km) – 1,05,245

9th CGD Bidding Round – A Great Success

Offered 86 Geographical Areas (GAs), covering 26% of India’s population and

24% of its area

 Spread over 22 states and Union Territories – 174 Districts (156 full and 18

part)

 406 bids received from 38 entities (including 8 new and 2 foreign investors)

 10 GAs received 10 or more bids each

 Completed within record time – LOIs issued for 90% of GAs within one month

of bid closing date

 Significant minimum work commitment:

 PNG domestic connections – 221 lakh

 CNG stations – 4,600

 Steel pipeline (inch‐km) – 1.16 lakh

10th CGD Bidding Round

PNGRB invites Application‐cum‐Bids for CGD Network in 50 GAs as per details given in Appendix ‐ III.

For further details, please refer to the e‐bidding web‐site

https://eprocure.gov.in/eprocure/app and PNGRB’s website www.pngrb.gov.in

Also please refer to the Gas Infrastructure Map of India, 2018 given below.

Highlights of 10th CGD Bidding Round

50 Geographical Areas (GAs) offered

Spread over 14 states

Covers 124 districts (112 full and 12 part)

Covers 18% of India’s area and 24% of its population

Post‐10th round

States of Gujarat, Punjab, Goa and Haryana and UTs of Delhi, Chandigarh,

Diu & Daman and Dadra Nagar Haveli would be fully authorized for development of CGD Networks

53% of India’s area and 70% of its population spread over 402 districts in 27 states/UTs would have access to CGD Networks

Validated by enthusiastic participation in the 9th CGD Bidding Round, all its features retained in the 10th CGD Bidding Round

All GAs are on or near existing or under‐construction Natural Gas Pipelines

Continuing Electronic Bidding

Investor‐friendly Regulations

Gas can be transported through cascades for quick start of business

Gas pipeline operator to provide connectivity to CGD Network within 180/270 days

Marketing Exclusivity increased from 5 to 8 years (extendable up to 10 years for performers)

Infrastructure Exclusivity for 25 years continues

Level playing field and Easy eligibility criteria

Performance Bank Guarantee capped at Rs. 50 Crore

CGD Bidding Round – Important Timelines Activity Date

Release of Tender Documents (through e‐bidding) 8th November, 2018 at 0900 Hrs

Pre‐bid Conference 6th December, 2018 at 1100 Hrs

Last Date of Bid Submission 5th February, 2019 at 1730 Hrs

Technical Bid Opening 7th to 9th February, 2019

Financial Bid Evaluation To be intimated

Authorization of Geographical Areas by End‐February, 2019

Unique        Geographical       State          Winning       CNG              PNG              Steel Pipe

GA ID              Area                                           Entity            Stn         Connections      Inch-Km

9.86    Burdwan District        WB     IndianOil‐Adani  80              2,47,852             2,230

                                                                         Gas Pvt Ltd 

Unique        Geographical                                   State         Population         Area (Sq. Km)       

 GA ID           Area (GA)                                   

 10.47     Darjeeling, Jalpaiguri and Uttar Dinajpur  WB          87,26,803                   12,516

10.48      Howrah (Except areas already authorized) WB         1,03,69,174                  4,616

and Hooghly (Except areas already authorized)

10.49       Nadia (Except areas already authorized)    WB          1,51,77,381                  8,021

and North 24 Pgs (Except areas already authorized)

10.50       South 24 Parganas                                           WB          81,61,961                     9,960

(Except areas already authorized)

Publicity : Srjeet Rupom. Photography : Biswajit Saha.

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