India's BPCL to spend over $1bn on new city gas projects
Indian state-owned energy company BPCL will spend 100bn rupees ($1.34bn) in developing new city gas distribution (CGD) projects in areas for which it secured licences in the latest bidding round, it said on January 25.
The company won licences to retail CNG to automobiles and piped natural gas to households in six geographical areas (GAs) bid out in the latest 11th bidding round.
The CGD footprints of BPCL, along with its joint ventures, will now extend to 48 areas covering 94 districts in 18 states, across India. Currently, with a presence in 63 districts, BPCL along with its joint ventures together holds a 33% market share in the CGD sector in the country.
“After announcement of results of bidding, BPCL's committed investment in CGD network, on a standalone basis, would increase to over 220bn rupees for development of 23 GAs, including 100bn for the six new GAs,” the company said.
Indian Oil Corp, another state-owned energy company, last week said it would spend 70bn rupees to develop new city gas projects in India.