New Delhi: India's City Gas Distribution (CGD) sector is set to witness Compounded Annual Growth Rate (CAGR) of 10 percent over the next decade through 2030 because of the government's efforts to improve the share of natural gas in the economy from 6 percent to 15 percent by 2030. With the 10th round of CGD bidding, 70 percent of the country's population and 50 percent of the total area has been covered under the city gas network. "With the completion of these projects, CGD sales volumes are expected to grow at a CAGR of 10 percent through 2020-30," equity research firm Motilal Oswal said in a report.
The report covers the growth registered by three main players — Indraprastha Gas (IGL), Mahanagar Gas (MGL) and Gujarat Gas. IGL incorporated a strong 22 percent addition taking the total number of consumers to 1.4 million during FY20. In comparison, MGL added 1,00,000 consumers, taking the total to 1.26 million households. Gujarat Gas also added 93,000 households taking the total to 1.4 million.
The report said Gujarat Gas has set up 52 net new CNG stations, while IGL set up 55, and Mahanagar Gas added just 20 CNG stations in FY20. In terms of pipeline infrastructure, Gujarat Gas remains ahead of the other two with a total network of 24,300 kilometer, while IGL has a total network of 14,605 kilometer and Mahanagar Gas' 5,630 Kilometer.
Gujarat Gas was awarded six geographical areas (GAs) in the tenth round and the company is looking forward to the 11th round of CGD bidding which may include GAs adjoining to its operating areas.
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