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Regulator eyes more allocation for PNG
Mint Mumbai
|December 04, 2023
Currently, there are around 10 mn piped gas connections compared with over 290 mn cylinder gas users
The Petroleum and Natural Gas Regulatory Board (PNGRB) may recommend a specific allocation of natural gas used for cooking, said two people with knowledge of the plan.
City gas distributors (CGD) supply both compressed natural gas (CNG) for transportation and piped natural gas (PNG) for cooking.
The natural gas is sourced from legacy fields—old fields which were operated by state-run ONGC and Oil India Ltd. However, there is no specification or mandate on how much gas should go to each of the two segments.
Under the administered price mechanism (APM), the price of gas from legacy fields is capped, making it cheaper than gas from other fields.
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