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GGCL gets nod from PNGRB to set up network in Bhavnagar

14 Mar 2014 Evaluate

Gujarat Gas Company (GGCL) has received an approval from industry regulator Petroleum and Natural Gas Regulatory Board (PNGRB) to set up and operate City Gas Distribution (CGD) network in Bhavnagar area in Gujarat. It will allow the company to cover an additional geographical area of 8,153 square km under CGD.

Pursuant to PNGRB's letter granting to GGCL an authorization to lay, build, operate, or expand city or local natural gas distribution network for the geographical area of Bhavnagar, GGCL has accepted the authorisation in Schedule D of the PNGRB Regulation, 2008, vide a confirmation letter to PNGRB on March 13, 2014. The area will comprise of Bhavnagar district and few talukas of the newly formed district of Botad.

As per the provisions of the PNGRB Regulation, 2008 of granting Exclusivity for City or Local Natural Gas Distribution Networks, the company owned by the state run Gujarat State Petroleum Corporation Group has been granted 300 months of infrastructure exclusivity, which is valid up to March 04, 2039 and 60 months of marketing exclusivity valid up to March 04, 2019 for the CGD network.

Gujarat Gas, a 65.12 per cent subsidiary of BG Asia, is India’s largest private sector natural gas distribution company in terms of sales volumes, with operations in Gujarat. The company distributes natural gas to domestic, commercial and industrial consumers, and compressed natural gas as automobile fuel, in the cities of Surat, Ankleshwar, Bharuch, and surrounding areas.

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