City Gas Distribution Scheme

Why in news?

• The Petroleum and Natural Gas Regulatory Board (PNGRB) receives 430 bids in 11th city gas distribution round.

About City Gas Distribution scheme:

• The Government of India is pushing to promote the usage of environment friendly clean fuel i.e. natural gas as a fuel/feedstock across the country to move towards a gas based economy.
• Presently the share of gas in the country’s energy mix is just over 6% and the aim is to reach the 15% figure, while the world average is 24%.

Purpose:

• The city gas distribution (CGD) scheme aims to improve the availability of natural gas to the industrial, domestic and commercial segments of a region.
• It has two segments:
  • Cooking fuel (i.e. Piped Natural Gas) – both domestic and industrial.
  • Transportation fuel (i.e. Compressed Natural Gas).

How it works?

• Under the Petroleum and Natural Gas Regulatory Board (PNGRB) Act 2006, PNGRB grants the authorization to the entities for developing a City Gas Distribution (CGD) network (including PNG network) in a specified Geographical Area (GA) of the country.

About PNGRB:

• The Petroleum and Natural Gas Regulatory Board (PNGRB) was constituted under The Petroleum and Natural Gas Regulatory Board Act, 2006.
• It aims to protect the interests of consumers and entities engaged in specified activities relating to petroleum, petroleum products and natural gas and to promote competitive markets.

Mandates

• To regulate the refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas (excluding production of crude oil and natural gas)
• To ensure uninterrupted and adequate supply of petroleum, petroleum products and natural gas in all parts of the country.

PRELIMS QUESTION

Consider the following statements:

1. Petroleum and Natural Gas Regulatory Board is mandated to regulate production of crude oil and natural gas

2. City gas distribution (CGD) scheme aims to improve the availability of natural gas to the industrial, domestic and commercial segments of a region

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer