Round Table Discussion on “Challenges in CGD” Deepak Sawant. (PNGRB) 1 PETROLEUM & NATURAL GAS REGULATORY BOARD 20 th January 2011,New Delhi
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
8PETROLEUM & NATURAL GAS REGULATORY BOARD
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
9PETROLEUM & NATURAL GAS REGULATORY BOARD
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
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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
PETROLEUM & NATURAL GAS REGULATORY BOARD 15