PETROLEUM AND NATURAL GAS REGULATORY BOARD
Natural Gas Infrastructure
1
An overview
• About PNGRB
• Why Natural Gas
• Natural Gas Infrastructure in India
• Development Plans
• Key Policy enablers and way forward
2
PNGRB Act, 2006
Refining
Processing Petroleum,
Petroleum
PNGRB Storage Products
to and NG
regulate Transportation excluding
production
Distribution
of crude oil
Marketing & Sale and NG
Protect the interests of consumer and entities
Ensure uninterrupted and adequate supply
Promote competitive markets
3
Functions of PNGRB - Section 11 of Act
PROTECT
Interests of consumers by fostering fair trade & competition amongst
entities
REGISTER entities for
Storages, LNG Terminals, Natural Gas /Petroleum Product
Marketing
DECLARE, AUTHORISE entities for
Common Carrier or Contract Carrier (Pipelines);
CGD networks
REGULATE
Transportation Rates for pipelines
Access to Third Parties for common/contract carrier pipelines, CGD
Networks
Lay Down
Technical standards and specifications including safety standards
4
PNGRB – Current Focus
Increase share of Natural Gas in India’s Energy basket
Create infrastructure to support higher consumption of
Natural Gas in India
Establish a transparent and vibrant Natural Gas market in
India
Balance the interests of Consumers, Transporters and
Producers of Natural Gas
5
Why Natural Gas?
Enabler to meet
country’s COP21
Environment commitments on
friendly Carbon emissions
GAS
USAGE
Cheaper than LPG
Cheaper than
for domestic
automotive fuels
households
such as Petrol
and Diesel Recent discoveries are more of
Natural Gas than oil ensuring
energy security to India
6
Natural Gas
India is 3rd largest consumer in the world after China and
USA
At every 1 MMSCMD usage of CNG, CO2 emission is reduced
by 2.7 lakh tonnes
1 MT import of LNG saves about US$ 200m
India's commitment to COP is one-third reduction in
pollution
7
Natural Gas Consumption in India
Gas Consumption and its share in Energy Mix Natural Gas Share in Energy Mix (2017)
24.0%
10.1% 9.7% 10.5%
8.9%
7.9%
7.1%
6.6% 6.2% 6.2% 6.2%
165.8147.7
132.4142.5 134.2128.6130.7139.1150.0153.0
94.6 6.2%
FY09 10 11 12 13 14 15 16 17 18 19
Gas Consumption (mmscmd) % of Energy Mix India World
• Gas consumption linked to domestic gas availability, LNG affordability and
infrastructure
• In the state of Gujarat, share of natural gas in energy mix is 26%
• NG share in India’s energy mix far below global average – room for growth
Source: PNG Stat, PPAC, BP Stats
8
Gas Infrastructure Map of India - 2021
9
Development of CGD Networks
No. of % Share in respect of India
Authorizations
GAs
Area Population
Pre - PNGRB 31 3.02 % 9.67 %
Section - 42 6 0.61 % 1.57 %
Rounds 1 to 8 55 7.23 % 8.83 %
Round 9 86 23.82 % 26.38 %
Round 10 50 17.92% 24.23%
Total 228 52.60% 70.68%
CGD networks Authorisations
% Area of India
80 250
CUMULATIVE % OF AREA and POPULATION OF INDIA
228
CUMULATIVE GEOGRAPHICAL AREAS (GAs)
70
178 200
60
50
150
40
92
86 100
30 79 80
62
20 54
45
36 39 50
30
10
0 0
11
Status of CGD Infrastructure
As on February, 2021
• Domestic PNG Connections 74.19Lakh
• Commercial PNG Connections 32,059
• Industrial PNG Connections 11,010
Total PNG Connections 74.62 Lakh
• CNG Stations 2706
• Pipeline Infrastructure (Inch-km) - Steel 80,625
• Pipeline Infrastructure (Inch-km) - MDPE 1,84,127 12
CNG Stations
12000
9885 9899 9920
10000
9169
7994
8000
CNG Stations
6594
6000 5552
4511
4000 3469
2427
2000
0
Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jan-25 Jan-26 Jan-27 Jan-28 Jan-29
Development of National Gas Grid
National Gas Grid
• Aimed at increasing the Natural Gas infrastructure in the country
and to implement “One Nation One Gas Grid Policy”. Pipelines
forming the national gas grid as on 31.12.2020:
Authorized : 32,559 Km
Operational : 17,127 Km
Under construction : 15,432 Km
• Around 15,000 Km of NGPL are expected to be added in next 4-5
years.
• The existing and upcoming pipelines will form a basic National Gas
Grid in the Country.
14
Open Access to CGD Networks
Notified guiding CGD regulations on exclusivity,
CGD Access code and CGD Tariff for declaring CGD
networks as common carrier or contract carrier to
open up CGD business for competition, Regulate the
open access in CGD networks for development of the
CGD networks and Increase in share of natural gas
in the energy basket of India
15
Operation and Establishment of LNG Stations
• Setting up of LNG Stations is outside the purview CGD
network authorisation permitting the entity to establish and
operate LNG stations in country for transport Sector and not
for CNG/LCNG
• Around 1000 LNG stations have been planned in next three
years
• 50 LNG stations recently inaugurated by Hon. Minister.
16
Policy enablers and way ahead
Regulatory interventions
Domestic gas allocation for Domestic PNG and CNG
Designated CGD as “Public Utility”
State governments’ commitment for facilitation of CGD
Networks
Declaring CGD networks as common carrier
Establishment of LNG fueling stations
Development of National Gas Grid
Authorisation of Balance Geograhical Areas
17
Thanks for your attention please
