Indian Duo to Form City Gas JV
Indian state-owned fuel retailer Hindustan Petroleum Corporation (HPCL) and explorer Oil India are to form a city gas distribution (CGD) joint venture, Mint reported June 14.
In May, India launched its biggest bidding round for allocating licences. The government is rolling out networks in 86 new geographical areas covering 174 districts. That will enable CGD coverage in nearly half of India's 640 districts and about half the 1.2bn-strong population. The bidding process is expected to be completed by July 10 and licences are expected to be allocated by October.
At present, HPCL has three CGD joint ventures. Godavari Gas (GGPL) is a joint venture with Andhra Pradesh Gas Distribution Corporation (APGDC). GGPL has been authorised to set up CGD infrastructure in East Godavari and West Godavari districts in the state of Andhra Pradesh. Aavantika Gas, a joint venture with Gail, is authorised to implement CGD projects in the cities of Indore, Ujjain, Pitampur and Gwalior, in the state of Madhya Pradesh. HPCL’s third joint venture, Bhagyanagar Gas, has been authorised to carry out CGD projects in the states of Andhra Pradesh and Telangana.
Earlier this month, Indraprastha Gas and India’s biggest LNG importer Petronet LNG signed a memorandum of understanding to jointly bid for CGD licences.