City Gas Distribution (CGD) Pipeline Project

India is installing Gas Pipeline Network across its geography and connecting its major cities, ports, industrial & domestic consumption points. Also City Gas Distribution (CGD) network is carried out by in different cities by various govt. & private companies. Major investment by PSU & private players are done.

Govt. of India has allowed 100% FDI in CGD & Gas pipe line network to attract investment. CBG project owners have to supply CBG to their tie-up CGD distributor at their selling point, for which transportation cost will be provided. And with completion of nearby Gas pipeline network of CBG project can inject CBG directly to Gas pipeline.

The design capacity of pipeline network in India is expected to reach 815 MMSCMD in 2029-30.

However, considering the addition of capacity directly linked to the existing/planned sources of natural

gas in the country, the gas grid capacity in India (pipeline emanating from source) is expected to reach

582 MMSCMD in 2029-30 from the present 274 MMSCMD. This capacity is expected to take care of the natural gas supply scenario in the projected period.

In order to facilitate pipeline infrastructure sharing there is a need for a robust Open Access Code for the natural gas pipelines. Establishment of a market for natural gas transportation promotes transparent and fair pricing of transportation service. A switch to a suitable tariff system like the ‘Entry Exit system or a Hybrid System, which encourages competition in the market as well as provide services to the customers at the reasonable tariff, particularly to customers at geographically disadvantageous locations is being considered.

The development and usage of Bulletin Boards would facilitate gas trading and pipeline capacity trading by providing system and market information. Constituting an independent Pipeline System Operator (PSO) once major pipelines are build is expected to streamline tariff-sharing among various pipeline system owners.