The city gas distribution (CGD) sector has witnessed remarkable growth over the past few years. The existing players have invested significantly in developing infrastructure and expanding operations to new geographical areas (GAs). CGD is the second largest consumer of Natural gas (42.83 MMSCMD in Jan.25 of which 50% is LNG share) next to Fertilizer (56.7 MMSCMD of which 50% is the LNG share).

After 12th round of bidding 99.9% of population residing in 99% of the area of our country has been covered for wishful gas connectivity. The authorization envisages 11.86 Cr of PNG-D connections, 19479 of CNG stations and 3.84 lac inch - Km of steel pipelines. Against which after 3 decades of existence, the targets achieved (till November 2024) are: 1.397 Cr of PNG-D connections, 7395 CNG stations and 2.3 Lac of inch Km of steel pipelines.

Over the past few years, the Petroleum and Natural Gas Regulatory Board has introduced various policies to

streamline activities in the sector. These include the issuance of force majeure guidelines, relaxation in LNG

marketing and distribution, simplification of the gas pipeline tariff structure and creation of a gas exchange

framework, however some amendments like taking away supply of Natural Gas through Cascade, from definition of Natural Gas, control over establishing CGS in another GA , Government initiative for EVs and diminishing APM gas volumes, have created some uncertainty in the mind of the CGD entities.

To meet additional gas requirement, alternative modes of gas sourcing including Bio Gas production and sourcing have been emerging at reasonably good speed. The options for gas sourcing have been the HTHP gas, Gas from

auctioned Blocks, Long term LNG, Short term LNG, Spot LNG and sourcing through IGX under various contracts.