Round Table Discussion on “Challenges in CGD”

Deepak Sawant.

(PNGRB)

1PETROLEUM & NATURAL GAS REGULATORY BOARD

20th January 2011,New Delhi

CONTENTS

PNGRB ACT 2006

CGD BIDDING -RELEVANT REGULATIONS

AUTHORISATION PROCESS

CHALLENGES IN CGD

2PETROLEUM & NATURAL GAS REGULATORY BOARD

PNGRB ACT, 2006 Clause 11(a), Chapter III

“ The Board shall protect the interest of consumers by fostering fair trade and competition amongst the entities”

Clause 17(2), Chapter IV

“ An Entity which is laying, building, operating orexpanding or which proposes to Lay, Build, Operate orExpand, a city or local natural gas distribution networkshall apply in writing for obtaining an authorizationunder this act”

3PETROLEUM & NATURAL GAS REGULATORY BOARD

CGD BIDDING -RELEVANT REGULATIONS

CGD REGULATION - “Petroleum and Natural Gas Regulatory Board(Authorizing Entities to Lay, Build , Operate or Expand City or LocalNatural Gas Distribution Network) Regulations, 2008”

CGD TARIFF DETERMINATION – “Petroleum and Natural GasRegulatory Board (Determination of Network Tariff for City or LocalNatural Gas Distribution Networks and Compression Charge forCNG) Regulations, 2008”

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Petroleum & Natural Gas Regulatory Board (Levy of Fees & OtherCharges) Regulations, 2007

CGD EXCLUSIVITY - “Petroleum & Natural Gas Regulatory Board(Exclusivity for City or Local Natural Gas Distribution Network)Regulations, 2008”

CGD BIDDING -RELEVANT REGULATIONS – Contd…

TECHNICAL STANDARDS,SPECIFICATIONSINCLUDING SAFETY STANDARDS -T4S

Access Code

AFFILIATE CODE - Petroleum & Natural Gas Regulatory Board (AffiliateCode of Conduct for Entities Engaged in Marketing of Natural Gas andLaying, Building, Operating or Expanding Natural Gas Pipeline)Regulations, 2008

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AUTHORISATION PROCESS

PRELIMINARY SCRUTINY

PUBLIC CONSULTATION PROCESS

BIDDING

EVALUATION

AUTHORISATION

Petroleum & Natural Gas Regulatory Board(Authorizing Entities to Lay, Build , Operate orExpand City or Local Natural Gas DistributionNetwork) Regulations, 2008

6PETROLEUM & NATURAL GAS REGULATORY BOARD

EOI/SUO-MOTU

EOI or SUO -MOTU

Initiation of proposal -Under Regulation 4(1) & 4(2)

Expression of Interest route or

Suo-Motu by Board

Preliminary Scrutiny - Under Regulation 5 (1)

(a) natural gas availability position

(b) possible connectivity to NG Pipeline, LNG

supply

(c) any other relevant issue

EOI/SUO-MOTU

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PUBLIC CONSULTATION

Under Regulation 5(2) to 5(3)

1. Open Advertisement1. One national and

2. One vernacular daily newspaper

2. Webhosting

3. Public Consultation -30 days

Outcome of Public Consultation [u/r 5(4) & 5(5)]

1. Consider Public comments

2. Define Geographical Area

3. Firm up Charge Area

4. Firm up bid Document

5. NIT Advertisement1. One National and

2. One Vernacular daily newspaper

PUBLIC CONSULTATION before BIDDING

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AUTHORISATION AUTHORISATION IS SUBJECT TO:

Performance Bond submission within 30 days.

Gas Tie-up within 120 days of authorization.

Financial closure within 180 days.

The authorization shall be granted to the selected entity in the form at Schedule D

AUTHORISATION

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CGD SECTORS DOMESTIC

CNG

COMMERCIAL

INDUSTRIL

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MAJOR CHALLENGES IN CGD

• Availability of Gas

• CGD is not a TOP priority sector

• Trunk pipeline infrastructure

• Capital intensive

• Huge infrastructure required.

• Long Build Up period.

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DOMESTIC CONNECTION -Constraints in building a network in the crowded

Metropolis

– Limited corridor for utilities

– Concretized Roads

– Multiple clearances required

– Crowded and Congested cities.

– Only 6-7 months available for laying pipelines in a year.

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CNG RETARDERS COST OF THE KIT

FILLING QUEUE

RANGE IN DISTANCE

CYLINDER DEAD WEIGHT

AVAILABLITY CORRIDORS

SAFETY CONCEPT

COMPETITION WITH LIQUID FUELS

PETROLEUM & NATURAL GAS REGULATORY BOARD 13

FAVOURABLE FACTORS ENVIRONMENTAL FREINDLY FUEL

ADULTERATION NOT POSSIBLE

NO FUEL THEFTS

BETTER THAN BHARAT STAGE -4

UNIFORM BURNING

CHEAPER THAN GASOLINE

NON CARCINOGENIC HYDROCARBON

PETROLEUM & NATURAL GAS REGULATORY BOARD 14

ROAD MAP THREE HUNDRED CITIES IDENTIFIED

HIGHWAY DISPENCING

DUBLEDECKOR DISPENSATION

DEVELOPMENT OF NATIONAL GAS GRID

HIGHER GAS ALLOCATION PRIORITY

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THANKS

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