Page 41 - Policy Economic Report_Jan 25

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

4. NATURAL GAS PIPELINES

o The length of operational Natural Gas Pipeline in the country has increased from 15,340 Km in
2014 to 24,945 Kms as on 30.09.2024. Further, development of about 10,805 Kms Natural Gas
Pipeline is under execution. With the completion of these pipelines authorized by PNGRB/GoI, the
national gas grid would be completed and would connect all major demand and supply centre in
India. This would ensure easy availability of natural gas across all regions and also help to achieve
uniform economic and social progress.

5. UNIFIED PIPELINE TARIFF

o The Petroleum and Natural Gas Regulatory Board (“PNGRB”) has amended PNGRB (Determination
of Natural Gas Pipeline Tariff) Regulations to incorporate the regulations pertaining to Unified
Tariff for natural gas pipelines with a mission of “One Nation, One Grid and One tariff”.

o PNGRB has notified a levelized Unified Tariff of Rs.80.97/MMBTU w.e.f. 01.07.2024 and created
three tariff zones for Unified Tariff, where the first zone is up to a distance of 300 kms from gas
source, second zone is 300 – 1200 kms and third zone is beyond 1200 kms.

o The national gas grid covers all the interconnected pipeline networks owned and operated by
entities viz. Indian Oil Corporation Limited, Oil and Natural Gas Corporation Limited, GAIL (India)
Limited, Pipeline Infrastructure Limited, Gujarat State Petronet Limited, Gujarat Gas Limited,
Reliance Gas Pipelines Limited, GSPL India Gasnet Limited and GSPL India Transco Limited.

o The reform will specially benefit the consumers located in the far-flung areas where currently the
additive tariff is applicable and facilitate development of gas markets and vision of government
to increase the gas utilisation in the country.

6. CITY GAS DISTRIBUTION (CGD) COVERAGE

o PNGRB has authorized 307 Geographical Areas for development of CGD infrastructure with a
potential coverage of about 100% of country’s area and 100% of the population. As on 30.09.2024,
the total number of PNG (D) connections and CNG Stations in the country was 1.36 Cr and 7259,
respectively.

7. SATAT INITIATIVES

o SATAT initiative was launched on 1st October 2018, to promote an ecosystem for production and
utilization of Compressed Bio Gas (CBG).
? As on 30.11.2024, 80 CBG plants have been commissioned and 72 CBG plants are at
various stages of construction.
? The Ministry has issued guidelines for synchronization of CBG with CNG in CGD Network;
? A scheme for the development of pipeline infrastructure (DPI) for injection of CBG into
the City Gas Distribution (CGD) network has been launched to provide financial support
for extending pipeline connectivity from CBG plant to the city gas distribution grid.
? Online portal for receiving application under DPI Scheme has been activated w.e.f. 1st
September, 2024.

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