33,764 Km Natural Gas Pipeline Network Authorized to Create A National Gas Grid for Availability of Natural Gas Across the Country

As on 31.03.2021, Petroleum and Natural Gas Regulatory Board (PNGRB) has authorized approximately 33,764 Km Natural Gas Pipeline Network across the country with the aim to create a national gas grid and increase the availability of natural gas across the country. The authorized Natural Gas pipeline entity is allowed to lay spurlines as per the provision of the regulations. Accordingly, 19,998 km of Natural Gas pipeline (including sub-transmission pipeline & tie in connectivity pipeline) are operational and 15,369 km are under various stages of construction. The existing and upcoming pipelines will form a basic National Gas Grid in the country. However, expansion of pipeline infrastructure is a continuous effort based on gas demand assessment of various regions.

Government has taken a series of decisions to promote use of Clean Energy:

• Development of City Gas Distribution (CGD) networks supports the availability and accessibility of natural gas in form of Piped Natural Gas (PNG) to households, industrial uses and Compressed Natural Gas (CNG) for transportation uses. PNGRB grants authorization to the entities for developing of CGD network in Geographical Areas (GAs) as per PNGRB Act, 2006. PNGRB identifies GAs for authorizing the development of CGD network in synchronization with the development of natural gas pipeline connectivity and natural gas availability. So far 232 GAs have been authorized for development of CGD network across country up to 10th CGD Bidding Round covering more than 400 districts in the country in 27 States/Union Territories (UTs), which covers around 71% of India’s population and 53% of its area. PNGRB webhosted public notice dated 04.02.2020 wherein a tentative list of 44 identified GAs to be covered under upcoming 11^th CGD bidding round has been prepared.
• With the aim to promote and sustain an efficient and robust gas market and to foster gas trading in the country, PNGRB has granted authorization to Indian Gas Exchange Limited on 02.12.2020, to set up and operate Gas Exchange.
• Furthermore, in order to make natural gas affordable in far flung areas, PNGRB has notified Unified Tariff Regulations on 23.11.2020 by way of Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas Pipeline Tariff) Second Amendment Regulations, 2020.
• To reduce fuel emissions by increasing the share of LNG in India’s energy mix and to promote the usage of cleaner fuels in the future, PNGRB has allowed any entity to establish and operate LNG Stations in any GA or anywhere else in the country for dispensing LNG in liquid state, only to the transport sector.
• In order to increase competition in CGD areas, PNGRB has notified Guiding Principles for declaring City or Local Natural Gas Distribution Networks as common carrier or contact carrier Regulations to provide non- discriminatory open access to third party entities.

Further, an initiative, Sustainable Alternative Towards Affordable Transportation (SATAT) was launched on 1st October 2018 aiming to establish an ecosystem for production of Compressed Bio Gas (CBG) from various waste/ biomass sources in the country. SATAT has envisaged developing 5000 CBG plants with total CBG production capacity of 15 Million Metric TonnePer Annum (MMTPA).  Under SATAT, Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited, Gail (India) Limited and Indraprastha Gas Limited have invited Expression of interest (EoI) from potential entrepreneurs to procure CBG at an assured price. In response of EoI invited, Oil PSUs have issued 479 Letters of Intent (LoIs) till January 2020. At present, 2 CBG plants located at Pune and Kolhapur are operational and their produced CBG is being sold in Auto sector since September 2019

Cabinet Committee on Economic Affairs (CCEA) has approved VGF for Jagdishpur-Haldia/Bokaro-Dhamra Natural Gas Pipeline (JHBDPL) Projects and North East Gas Grid (NEGG) project. CCEA in its meeting held on 21st September 2016 has approved 40% Capital Grant i.eRs 5,176 crore of the estimated capital cost of Rs 12,940 crore(including inflation and interest during construction) by GOI to GAIL(India) Limited for execution of Jagdishpur-Haldia/Bokaro-Dhamra Natural Gas Pipeline (JHBDPL) Projects. As on May, 2021, Government has released Rs. 4486.748 crore to GAIL under this scheme.