City Gas Distribution (CGD) Network

City gas distribution or CGD refers to transportation or distribution of natural gas to consumers in domestic, commercial or industrial and transport sectors through a network of pipelines. This business has, over the last decade, attracted several companies to lay a network of gas pipelines.

• Under the Petroleum and Natural Gas Regulatory Board (PNGRB) Act 2006, PNGRB grants the authorization to the entities for developing a City Gas Distribution (CGD) network (including PNG network) in a specified Geographical Area (GA) of the country. CGD sector has four distinct segments – Compressed Natural Gas (CNG) predominantly used as auto-fuel, and Piped Natural Gas (PNG) used in domestic, commercial and industrial segments.
• At present, 31 firms are developing CGD networks across 81 geographical locations in 21 States and Union Territories, supplying clean cooking fuel in the form of PNG to about four million households. In last five years (2014-2019) city gas distribution (CGD) network has expanded from 34 GAs to 228 GAs covering 406 districts.
• The government, which plans to provide 10 million PNG connections, has introduced stringent emission levels for vehicles and plans to develop green corridors to reduce India’s carbon footprint.