AHMEDABAD: Gujarat is set to become the first state in India to be covered under city gas distribution (CGD) network, once Petroleum and Natural Gas Regulatory Board (PNGRB) completes bidding process for distributing natural gas in eight geographical areas (GAs) in Gujarat.
The oil and gas regulator has invited bids from prospective CGD companies for 86 geographical areas spread across 174 districts of 22 states and union territories (UTs) in India under the ninth round of bidding. The geographical areas being auctioned for the city gas distribution also include eight GAs covering 14 districts in Gujarat, which already has remaining districts covered under the existing 23 authorised CGD networks.
“Gujarat is going to be the first state in the country with 100% CGD network coverage in the next couple of months,” said PNGRB chairperson D K Sarraf, who was in Gandhinagar on Wednesday for the investors’ meet organized as part of the latest round of CGD bidding.
The eight GAs being offered under the latest round of bidding in Gujarat cover districts such as Surendranagar, Narmada, Porbandar, Junagadh, Mahisagar, Tapi, Dangs and Gir Somnath, parts of the districts of Morbi, Botad, Navsari, Kheda and Surat.
With the CGD market in Gujarat already maturing, Sarraf also asked existing city gas distribution companies in the state to look beyond Gujarat and develop CGD networks in other parts of the country. The last date for the submission of bids under the ongoing ninth round of bidding is July 10.
Talking about the robust development of the city gas distribution market in Gujarat, Sarraf said, “Natural gas accounts for 25% of the total energy consumption in Gujarat, which is higher than 24% average in the world. The share of natural gas in total energy consumption in India is just 6%.”
With 17.45 lakh connections, Gujarat has the highest number of households connected with piped natural gas (PNG) across India. The state also has the highest number of industrial (4,417) and commercial (17,439) piped natural gas (PNG) connections.
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