The guidelines inviting bids for city gas distribution networks will be announced within 12 weeks, according to the Petroleum Regulatory Board.
“The draft guidelines have been circulated for comments and we expect to finalise them within 12 weeks after taking into consideration the views of various stakeholders,” S. Krishnan, Chairperson of the Petroleum and Natural Gas Regulatory Board, said.
Speaking on the sidelines of a CII Conference on Natural Gas, the regulator said the Government has to outline the overall policy framework for utilisation of gas as there were four major general user segments of natural gas, both produced domestically and imported.
“Once there is adequate supply, we need to look into how we can supply gas to small and medium enterprises in a local area, offer supplies to the commercial segment, compressed natural gas for stations and domestic gas supply through pipelines. This calls for a broader Government guideline,” he said.
However, he felt there is a need for clarity with regard to the national access code for natural gas pipelines to facilitate supplies.
Earlier, addressing the conference, the regulator said the objective was to increase dependence on gas from the current 10 per cent to 25 per cent in the medium term. This has to factor in the overall potential of domestic gas production capacity, import and other forms, including coal bed methane gas, shale gas and gas through coal gasification.
The US has already become self-sufficient in production of shale gas and has potential to offer to others. Efforts are underway to explore a new transport route from the North to address the issue of global warming. The availability of gas will enable us to finalise the developers of city distribution networks, he said.