Centre pushes city gas distribution networks to boost gas consumption

The centre has identified about 140 possible geographical areas in 21 states where work to develop city gas distribution (CGD) networks can be started in the near future, says the ministry of petroleum and natural gas.

These CGD networks will have the potential to generate direct employment opportunity to about 60,000 people at a total investment of about Rs21,000 crore in the next 5 years, according to the ministry.

The centre has set a target of connecting 10 million households with piped natural gas (PNG) through city gas distribution networks against the current level of 3.98 million PNG connections, says the ministry release.

At present, 31 city gas distribution (CGD) entities are operating CGD networks in 81 cities. These entities have connected about 3.98 million households which are availing the benefit of eco-friendly cooking fuel.

In an interaction with stakeholders, including state governments and oil and gas industry representative, petroleum minister Dharmendra Pradhan said the centre is working towards ushering in a gas-based economy by increasing the share of natural gas in primary energy mix of the country from current level to 15 per cent in coming years.

The thrust is on enhancing domestic gas production, encouraging the import of liquefied natural gas (LNG), completion of national gas grid and speedier roll out of city gas distribution (CGD) network in the country, a petroleum ministry release stated.

Towards this, the ministry of petroleum and natural gas (MoP&NG) has organised an interaction session with all stakeholders to expand the coverage of CGD networks in the country.

The interactive session, held under the chairmanship of petroleum minister, was attended by senior officials of the ministry and various state governments, chairperson and members of the Petroleum & Natural Gas Regulatory Board (PNGRB), and representatives of the gas industry, including CGD companies.

Highlighting the central government's efforts at increasing gas consumption in the country, the petroleum ministry said it has already accorded priority in domestic gas allocation to PNG (domestic) and CNG (transport) segment to all CGD networks so as to ensure the availability of an environment friendly clean cooking and transport fuel at an affordable price to the people.

In order to expedite the expansion of PNG networks, the government through the ministry of urban development (MoUD) has also advised the states to rationalise the permissions processes for laying CGD infrastructure in the cities.

At present, 31 city gas distribution (CGD) entities are operating CGD networks in 81 cities. These entities have connected about 3.98 million households which are availing the benefit of eco-friendly cooking fuel.

Government/PNGRB has identified about 140 possible geographical areas (GAs) in 21 states where work to develop CGD network can be started in the near future, according to the ministry.

Pradhan urged all to work in synchronization for the development of gas-based economy in the country. He said that CGD should not be seen only as an urban facility. We need to link it to rural areas, industries, food processing units, etc. He emphasised that state governments should actively participate in this to make it a success and develop Indian gas sector.