Gas firms to invest ₹8,000 crore in state for CGD

MUMBAI: Bharat Gas Resources Ltd (BGRL), Unison Enviro Pvt Ltd and Maharashtra Natural Gas Ltd (MNGRL) will invest ₹8,000 crore in setting up their city gas distribution network (CGD) in Maharashtra in the next two years, said company officials today.

CGD is predominantly used as compressed natural gas (CNG) or auto-fuel, piped natural gas (PNG) in domestic households and by commercial and industrial segments.

Prime Minister Narendra Modi today laid foundation stones for these projects. The Petroleum and Natural Gas Regulatory Board (PNGRB), country’s gas transportation regulator, has invited bids for setting up city gas network in 50 areas. PNGRB aims to award contracts for the 10th round by the end of February 2019

While the geographical areas awarded to BGRL in Maharashtra include Ahmednagar, Aurangabad, Sangli and Satara districts, Unison Enviro would undertake setting up CGD networks in Latur and Osmanabad. The MNGRL would lay pipelines for CGD networks in Sindhudurg, Valsad, Dhule and Nashik districts.

“Under the CGD bidding rounds in Maharashtra, over 20 lakh domestic PNG connections and 381 CNG stations would be installed largely during a period of eight years up to September 2026,” said Rajendra P Natekar, director, BGRL.

At present, CGD authorisation has been given for 92 regions, covering 129 districts and spread over 23 states and Union Territories. These cover around 20% of India’s population and 11% of its geographical area.

India is targeting to raise the share of natural gas in the overall energy basket to 15% by 2030 from the current 6.5%.