OIL & GAS

CGD sector to record volume growth of 10 per cent CAGR through 2030

The City Gas Distribution (CGD) sector in India is set to register Compounded Annual Growth Rate (CAGR) of 10 per cent over the next decade through 2030 thanks to the government’s efforts to improve the share of natural gas in India’s primary energy mix to 15 per cent from 6 per cent currently.

With the 10th round of CGD bidding, 70 per cent of the country’s population and 50 per cent of the total area has been covered under the city gas network. “With the completion of these projects, CGD sales volumes are expected to grow at a CAGR of 10 per cent through 2020-30,” equity research firm Motilal Oswal said in a report.

The report covers the growth registered by three main players — Indraprastha Gas (IGL), Mahanagar Gas (MGL) and Gujarat Gas. IGL incorporated a strong 22 per cent addition taking the total number of consumers to 1.4 million during FY20. In comparison, Mahanagar Gas added 100,000 consumers taking the total to 1.26 million households. Gujarat Gas also added 93,000 households taking the total to 1.4 million.

The report said Gujarat Gas has set up 52 net new CNG stations, near IGL’s number of 55, while Mahanagar Gas added just 20 CNG stations in FY20.

Source
ET Energy World
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