The government has been taking the requisite steps to encourage growth in the CGD sector. In 2014, the government revised the policy for allocation/supply of domestic natural gas and provided top priority to the city gas distribution (CGD) entities for compressed natural gas (CNG) and domestic piped natural gas (PNG) segments. The sector received the much needed boost with the amendments in the swapping policy as well. However, the pandemic situation has caused a worldwide economic slowdown, with CGD sector being no exception. It resulted in a drastic reduction in demand from the CNG sector. Besides, the pandemic has also delayed project execution.
Nevertheless, the situation is expected to improve by March 2021 with consumption levels reaching upto 85 per cent of the pre-Covid level. The ninth and tenth CGD bidding rounds have already set specific targets for the Indian CGD industry to perform and achieve. With the upcoming 11th round with an anticipated 43 geographical areas (~120 districts), the targets for the industry are bound to increase.
In a recent conference on Gas in India organised by India Infrastructure Publishing, Ankit Gupta, Manager, Oil and Gas, ICF, made a presentation on the current demand, government initiatives, impact of COVID-19 and future outlook for the City Gas Distribution sector in India.