History of CityGas in India

City Gas Distribution means distribution of Natural Gas through a pipeline network to supply & sale to a customer for their various needs in a city.

Gas distributions started in India at British Time. In 1860s, two gas distribution companies “Bombay Gas Company” and “Oriental Gas Company Ltd” (OGCL) started in two cities “Bombay” and “Calcutta” respectively. That time, these two cities were having strong commercial and political importance for British India. These companies had distributed Coal Gas as a fuel successfully for years. Bombay Gas Company has listed their shares in Bombay Stock Exchange. OGCL or Calcutta Gas Company was nationalized by Govt. Presently known as “Greater Calcutta Gas Supply Corporation Ltd“.

Discovery of Natural Gas In India

With the discovery of Natural Gas in India in 1960 at Gujarat and Assam, Natural Gas started supplying to few customers (Probably industries) in Gujarat and Assam.

Evolution of City Gas Companies

In 1962, Assam Gas Company Ltd incorporated and started operation in 1967.

First Piped Natural Gas connection to a domestic customer was completed by Vadodara Municipal Corporation in 1972. Presently it known as Vadodara Gas Ltd.

In 1979, GSPC was formed. This was promoted by Gujarat State Govt. Later on, GSPC Gas was also started in 1999.

In 1980, Gujarat Amino Chem Ltd was formed. This was promoted by Mafatlal Group. Later on GACL was known as GGCL. Operation started in 1989.

Presently, GSPC Gas and GGCL have merged and known as Gujarat Gas Ltd. GGL is biggest CityGas company in India.

In 1990, TNGCL was incorporated as a Joint Venture company of GAIL (India) Ltd, Tripura Industrial Development Corporation Ltd. (A Govt. of Tripura Undertaking) and Assam Gas Company Ltd (A Govt. of Assam Undertaking).

In 1992, India’s 1st Coal Bed Methane based company “Great Eastern Energy Corporation Ltd” was incorporated and found gas in 2004.

In 1995, Mahanagar Gas Ltd (JV of GAIL (I) Ltd and British Gas) was incorporated after detailed survey completed by SofreGaz, France.

In 1998, Indraprastha Gas Ltd was incorporated by GAIL (I) Ltd, Bharat Petroleum Corporation Ltd and Govt of NCT. This company was founded to reduce Air pollution in National Capital Reason. Presently, IGL is largest CNG distributing company.

In 1999, Charottar Gas was incorporated in Anand, Gujarat.

Turning point for Indian City Gas sector

Year 2002 was a turning point for City Gas Distribution sector. With great efforts of Shri. M. C. Mehta, Honorable Supreme Court of India had directed to start CGD project in 16 highly polluted cities in India.       

Joint Venture Era

In 2003, Bhagyanagar Gas Ltd, (JV of GAIL (I) Ltd & HPCL) for Hyderabad city incorporated to start CGD project.

In 2004, Adani Gas Ltd has founded and started CNG in 2004 and Industrial supply in 2005 in city of Ahmedabad. This was an initiative of Adani Group.

In 2005, Central U.P. Gas Ltd (JV of GAIL (I) Ltd and BPCL) for Kanpur and Bareilly incorporated to start CGD project. 

In 2005, Green Gas Ltd (JV of GAIL (I) Ltd and IOCL) for Lucknow and Agra was incorporated to start CGD project.

In 2006, Maharashtra Natural Gas Ltd (JV of GAIL (I) Ltd and BPCL) for Pune city.

In 2006, Sabarmati Gas Ltd (JV of BPCL and GSPC) incorporated to start CGD project for Gandhinagar, Sabarkantha and Mehsana.

PNGRB -The new Beginning

In 31st March 2006, Petroleum & Natural Gas Regulatory Board Act was notified. After PNGRB act, detailed regulation was published in Nov 2008. As per regulation, existing CGD companies were given authorization for their operating geographical areas. PNGRB started competitive bidding process to authorized suitable and possible Geographical areas.

PNGRB Bidding rounds

PNGRB has conducted 10 rounds of CGD bidding. In 9th and 10th round of bidding PNGRB has attracted private players in a bigger way. It was a great success of Vision, Leadership, Policies, Infrastructure and many factors.

Gas Economy

CNG Fuel station

Huge nos of CNG stations are opening as it was never before. Highways are converting as CNG Corridor to connect one city to another even one state to another. Similarly, Automobile companies are launching their new CNG models to help in reducing pollution because of availability of CNG at all places.

PNG Availability

Existing and emerging City Gas companies are providing low pressure gas to their Domestic, Commercial and Industrial customers. Slowly but consistently conversion from liquid or solid fuel to Natural gas can be seen.

Natural Gas Prices

Domestically procured Natural gas and Imported LNG are the options for any City Gas Company. At few places only CBM is playing is role. Availability and price of domestic and LNG is helping Natural Gas to make it more viable than liquid fuel. It is a good proposition to switch to Natural Gas.

Targeting Gas Economy

Increasing Natural Gas share from 6% to 15% even more is not a big deal but need various help from Govt to promote City Gas. PNGRB is coming with 11th round of bidding which is majorly covering Madyapradesh, Tamilnadu, RAjasthan and others districts in various states. It shall be a great mix of Eco-Friendly and Economy.