The process has begun to establish city gas networks in the Northeast and Jammu & Kashmir, starting with Mizoram, through the issuance of licenses in the 12th round of bidding, which are projected to attract investments totaling $4.5 billion.
The Northeast region contributes roughly 20 percent of India’s total natural gas production of 75 million standard cubic meters per day. Assam, Arunachal Pradesh, and Tripura already possess gas production capabilities, while Manipur and Nagaland are believed to harbor significant reserves.
The Petroleum and Natural Gas Regulatory Board, the regulating body, has released a two-stage bid document for interested parties. A pre-bid meeting is scheduled for December 27, and query resolution will continue until January 25, 2024. Bids are to be submitted by February 23, with technical bid openings slated for February 26.
Officials indicated that the financial bid opening would be communicated to qualified entities after assessing their technical bids. The government has presented seven geographical areas in five states and two union territories, encompassing 92 districts, for bidding.
These states include Arunachal Pradesh, Meghalaya, Manipur, Nagaland, and Sikkim. Electronic bidding for additional geographical areas will soon commence, as the PNGRB aims to finalize the award by March.
Following this bidding round, only Mizoram, Andaman & Nicobar, and Lakshadweep will not have access to CGD networks. The regulator anticipates a significant surge in daily gas sales, projecting an increase from the current 35 mscmd (Million Standard Cubic Meters per Day) to 150 MMSCMD within the next five years.
Regarding pipeline projects, Duliajan Numaligarh Pipeline Limited has proposed one from Duliajan to Chandrapur near Guwahati, traversing Jorhat, Golaghat, Karbi Anglong, and Nagaon. This project aims to supply natural gas to the Numaligarh refinery.
The company identifies a substantial business opportunity of approximately 5.5 MMSCMD demand with the development of a new pipeline, targeting city gas operators and other large consumers.
The government’s objective is to elevate the share of natural gas in the country’s energy blend to 15 percent by the year 2030.
