The petroleum and natural gas regulatory board (PNGRB) has notified finalised regulations for city gas distribution (CGD) networks regarding common carrier. As per the finalised regulations open access will be implemented in geographical areas where marketing exclusivity has ended. PNGRB has also notified that CGD companies will have at least 20 per cent of capacity of the CGD network or the maximum quantity of gas that has flowed in the network even for a period of one day in past, whichever is higher as common carrier. Moreover, existing CNG station at the site of fuel outlets operated by oil marketing companies will no longer be regarded as third party. A unified transmission tariff structure with unified tariff at 12 per cent post-tax ROCE has also been introduced by PNGRB.

ICICI Direct Research evaluates the implications of the finalised regulations by providing revised targets and the financial summary of key CGD players such as GAIL (India) Limited, Gujarat Gas Limited, Gujarat State Petronet Limited, Indraprastha Gas Limited and Mahanagar Gas Limited.