City Gas Distribution Network
PNGRB has plans to roll out bidding rounds for setting up CityGas Distribution (CGD) networks in cities and districts across the country to cover areas which could receive supply by the pipeline network currently under development.
Bharat Petroleum has been pursing CGD networks on partnership with other entities in order to share the investments and the risks. Our partnership with ONGC and OIL is expected to help in getting domestic gas for the CGD networks, subject to government policy. With PNGRB announcing network development in districts instead of only cities, the Capexhas considerably increased without commensurate increase in demand. JVC route helps mitigate the risks attendant to such high investments.
With more clarity in policy and availability of indigenous gas for domestic PNG and CNG segments, it is also planned that few of the city gas distribution systems and networks would be developed by Bharat Petroleum on its own, subject to attractiveness and robustness of returns. Bharat Petroleum has further set up four JVCs - Indraprastha Gas Limited (IGL) in Delhi NCR, Central UP Gas Limited in Kanpur Uttar Pradesh, Maharashtra Natural Gas Limited in Pune Maharashtra and Sabarmati Gas Ltd (SGL) in Gandhinagar Gujarat.
Ministry of Petroleum & Natural Gas established the Petroleum and Natural Gas Regulatory Board (PNGRB) with effect from 01.10.2007, under the Petroleum and Natural Gas
Regulatory Board Act 2006, to regulate the refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum prokducts and natural gas excluding production of crude oil and natural gas. The Petroleum & Natural Gas Regulatory Board Act, 2006 provides legal framework for the development of natural gas pipelines and city or local natural gas distribution networks. With the arrival of the PNGRB the implementation of PNG in various cities is being taken up in a phased manner as and when the bids are called for by the Regulator.
Sabarmati Gas Limited (SGL), incorporated on 6th June 2006, a joint venture company of Bharat Petroleum Corporation Limited (BPCL) and Gujarat State Petroleum Corporation (GSPC), has been conceived to retail natural gas by implementing gas distribution networks in Gandhinagar, Mehsana and Sabarkantha districts in Northern Gujarat.
The objective of Sabarmati Gas Limited is to construct, operate and maintain natural gas distribution systemsfor the supply of piped natural gas to various sectors i.e. industrial, domestic, commercial and transportation. Industrial demand comprises demand from small and medium scale industries. The Company operates in fairly large network in all the three districts of Gandhinagar, Mehsana and Sabarkantha of North Gujarat.
Maharashtra Natural Gas Limited (MNGL), was incorporated in January 2006 as a Joint Venture Company with GAIL for implementing supply of CNG to the household, industrial and automobile sectors in Pune and its nearby areas. MNGL has got the PNGRB authorization for city gas distribution in Pune &Pimpri-Chinchwad city including adjoining areas of Hinjewadi, Chakan andTalegaon and subsequently plans to move on to other districts of Maharashtra depending on economic feasibility.
Indraprastha Gas Limited (IGL), a Joint Venture Company with GAIL as the other co-promoter, was set up in December, 1998 for implementing supply of Compressed Natural Gas (CNG)to the household and automobile sectors in Delhi. IGL has commissioned over 325 CNG stations which supply environment friendly fuel to more than 7,50,000 vehicles. IGL has more than 4,70,000 domestic PNG customers and over 1300 commercial customers in Delhi. The company is also extending its business to the town of Greater Noida and Ghaziabad. IGL has acquired 50% of the equity held by financial institutions in Central UP Gas Limited, a Joint Venture Company promoted by BPCL and GAIL.
Central UP Gas Limited (CUGL), is a Joint Venture Company set up in March, 2005 with GAIL as the other partner for implementing the project for supply of CNG to household, industrial and automobile sectors in Kanpur and Bareilly in Uttar Pradesh. Indraprastha Gas Ltd., our joint venture has taken over 50% of the shares held by these financial institutions. CUGL has set up 13 CNG stations and is carrying on PNG operations.