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Soon, gas pipelines to connect Gujarat

84.31 per cent of the state’s area and 87.37 per cent of its population is covered under the CGD network

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Soon, homemakers anywhere in Gujarat will not have to worry about booking LPG cylinders and getting them changed once they are empty.

In about two years entire Gujarat will be covered under City Gas Distribution (CGD) said sources in petroleum and natural gas sector in the country during the Investors’ Meet for ninth round of bidding for CGD, which will bring more area under CGD across the country than all the previous eight rounds have achieved.

It will also increase the use of natural gas to around 100 million metric tonnes, almost five times the present consumption of 20 million tonnes by 2025.

As of now 84.31 per cent of area of Gujarat and 87.37 per cent of state’s population is covered under CGD network. After the bidding for the ninth round, entire Gujarat will be covered under CGD, making it the first state in the country to be entirely covered by CGD network, said DK Saraf, Chairman of Petroleum and Natural Gas Regulatory Board (PNGRB), while addressing the potential investors for the ninth round of bidding.

Close to 60 investors from Gujarat participated in the summit. Six districts in the state, which do not have CGD network are expected to get one during the night round of bidding.

Remaining parts of eight districts which are partially covered will also be covered under the network.

Districts that are to be covered fully include Gir Somnath along with the Union Territory of Diu, Dangs, Junagadh, Mahisagar, Narmada and Porbandar. While those covered partly include Morbi, Botad, Tapi, Surat, Navsari, Kheda and Valsad.

Saraf said that 6.2 per cent of India’s energy basket is met through natural gas, against a global average of 24 per cent, while about 25 per cent of energy basket of Gujarat is met from natural gas. Nationally, the share is expected to grow to 15 per cent nationally.

PROCESS TO FOLLOW

  • The ninth round will increase use of natural gas to around 100 million metric tonnes, almost five times the present consumption of 20 million tonnes by 2025.
     
  • PNGRB has sweetened the deal for the investors by increasing the licence to operate for eight years instead of five years initially and has also given an incentive of two additional years for licencees who meet targets
     
  • The bidding will begin in July and creation of infrastructure will begin after May 2020, while services will begin in about 2021
     
  • Chief Secretary JN Singh feels that business opportunities are more outside Gujarat than within the state in CGD sector
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