New Delhi: The Petroleum and Natural Gas Regulatory Board (PNGRB) has said that CNG stations anchored on petrol pumps will not be open to third party hiring. It has also barred oil marketing companies from setting up their own CNG dispensing units in their petrol pumps that have been bid out to a city gas licensee for CNG supply. The new regulations issued by PNGRB pertain to the city gas distribution (CGD) networks whose marketing exclusivity period has ended.
At the end of the exclusivity period, which is a minimum of five years, third parties can access pipelines that carry gas within a city as well as district regulatory stations for a fee, PNGRB has said in the order. However, "CNG compression and dispensation related equipment and facilities" will not be shared or be part of common infrastructure, it added.
The PNGRB gives away licences to entities for retailing of CNG to vehicles and piped natural gas to domestic consumers and industrial users within defined geographical areas. The company that wins the licence enjoys a period of exclusivity of operations, after which the city is open for other entities to operate.
The notification released by the PNGRB also details the methodology for the determination of transportation rates for the pipelines with a city distribution network. A third party can access pipelines to sell gas to an industrial or a domestic consumer. It can also use the pipelines for transporting its own fuel to a CNG station it may set up.
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