Sun. Jun 20th, 2021

City gas distribution

Transporting future fuel

#66 Evolution of CGD in INDIA

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In the early stage, the city gas only started on experimental basis, primarily to utilize locally produced gas. The two start-up companies of city gas distribution were Calcutta Gas Company & Bombay Gas Company established in 1857 and 1900 respectively using gas as a primary input.

The structure use of Natural Gas in domestic sector in Assam started after the formation of Assam Gas Company in 1962. In addition , the metros of Mumbai & Kolkata used coal gas for city gas usage way back since pre-independence. The coal gas which is known as synthesis gas didn’t find a commercial business and was abandoned in Mumbai way back in 1981. In Kolkata this concept is still working after the original company the Oriental Gas was succeeded by Greater Calcutta Gas Supply Corporation in 1987, however it is on the retardation phase.

The development of city gas in India remained localized for a long time. It was only in 80’s when structured development of city gas took place in India. Gujarat Gas Company Ltd. set an example for this initiative when Govt. of India allocated gas for development of city gas in Ankleshwar & Bharuch.

As a follow up of Supreme Court PIL, city gas distribution got implemented in Delhi, Mumbai & Baroda by Gail Ltd. In Mumbai, a JV comprising of GAIL, BG & Govt. of Maharashtra was formed to pursue city gas business & the JV was coined Mahanagar Gas in 1995. In the late 80’s Agartala Gas Company Limited. Tripura initiated the CGD business in India. Between 1990 till 2002 key initiatives were taken by Gujarat Gas Company Limited along with GAIL. In early 90’s GGCL launched the PNG supply for industrial consumer. In 1998, Supreme Court directed GAIL Ltd. & other oil marketing companies to introduce CGD network in 11 cities, other than Delhi & Mumbai in 2003.

From 2006 onwards, CGD business became a reality in India. On 31st March, 2006 Petroleum & Natural Gas Regulatory Board (PNGRB) Act was enacted by Government of India, which came into existence in 2007.

Summary of History of CGD in India is mentioned in the table below;

YearCityCompany
1880CalcuttaCalcutta Gas Company
1900MumbaiBombay Gas Company
1972VadodaraVadodara Municipal Corporation
1980DelhiDelhi Municipal Corporation
1982ONGC Colony – MehsanaONGC
1985DuliajanAssam Gas Company
1986SibsagarAssam Gas Company
1989-91Surat – Ankleshwar – BharuchGujarat Gas Company Ltd.
1994MumbaiMahanagar Gas Ltd.
1995DelhiIndraprastha Gas
2004Vadodara, AhmedabadAdani
2005HyderabadBhagyanagar Gas
2006Kanpur, LucknowCUGL & GGL
2006-07Gandhinagar, Kadi, Vapi, Mehsana, Rajkot, MorbiGSPC/SGL

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