Petronet, IGL to Bid for Indian City Gas Licences

Indraprastha Gas (IGL) and India’s biggest LNG importer Petronet LNG together are looking to bid for city gas distribution (CGD) licences. India May 8 kicked off its biggest bidding round for allocating CGD licences.

An IGL statement said that the two companies have signed a memorandum of understanding for the same, reported Businessline June 1. As per the MoU, the two will companies also promote the usage of LNG as vehicle fuel. IGL and Petronet LNG have decided to work together for developing technology for LNG powered vehicles and infrastructure for storage and distribution of LNG and liquefied CNG. IGL is one of India's biggest CGD companies and operates mainly in the Delhi and neighbouring areas known as National Capital Region (NCR). 

“IGL has agreed to own, design, construct, operate and maintain LNG & LCNG dispensing stations while partnering with PLL for development, procurement and promotion of LNG powered vehicles in areas of operations. IGL would also be looking at develop CGD network in other countries where PLL is foraying for LNG,” Businessline quoted IGL saying.

Petronet on its part would supply LNG/LCNG to dispensing locations, apart from assisting IGL in development of LNG and LCNG distribution centres, obtaining statutory approvals and pursuing vehicle owners and operators to suitably modify and design their vehicles to allow usage of LNG in motor vehicles and fill at IGL’s LNG stations, the statement said.

India is encouraging greater use of natural gas to combat air pollution and aims to double its share in energy mix to 15% in next five years. Once the ninth CGD bidding round is complete, almost half of India’s population will be covered, according to India’s oil minister Dharmendra Pradhan. India 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.