Auction of gas distribution license for 100 more cities soon

New Delhi, Jan 11:  The Indian petroleum downstream regulator will begin the process of auctioning gas distribution licenses for 100 cities this month, Petroleum Minister Dharmendra Pradhan said on Thursday.

Addressing industry chamber Ficci on the domestic production potential of hydrocarbons, he said the Petroleum and tural Gas Regulatory Board (PNGRB), has already given away gas distribution licenses for 80 cities, while the proposed 100 more would help boost gas consumption in the country towards increasing share of the clean fuel in the energy mix to 15 per cent in the next decade, from the 6.5 per cent at present.

In line with this objective, the government also plans to expand pipelines to secure gas supplies to the country’s northeast region, which holds rich hydrocarbon reserves but lacks infrastructure, the Minister said.

“A consortium of five PSUs (public sector undertakings) have proposed to bring a gas pipeline to the northeast region and have soought the PNGRB’s permission for the project,” he said.

The PSUs are together planning to build a gas grid in the northeast and link it to the Jagdishpur-Haldia pipeline, currently being built by GAIL, he added.  IANS)