OIL & GAS

City gas distribution bidding: 80 force majeure requests flood PNGRB

Downstream regulator Petroleum Natural Gas and Regulatory Board (PNGRB) has got at least 80 requests for force majeure from the ninth and tenth round of city gas distribution (CGD), in which 41 companies participated.

According to multiple sources close to the development, the big firms that applied for force majeure include Adani Gas, Gail Gas, Indian Oil Corporation, Indraprastha Gas, Haryana City Gas, and Torrent Gas. Some companies, including Adani Gas, approached the regulator seeking an extension of at least 12 months on deadlines in starting of commercial operations under the allotted geographical areas.

“The regulator is considering the request from the CGD entities. PNGRB has not yet decided on the timeline of extension. We will have to discuss it with the banks,” said a government source.

The eight-year deadline for ninth round was kept at September 30, 2026, and that for the tenth round was March 31, 2029. The two rounds of bidding are expected to see investments to the tune of Rs 1.2 trillion by 2030 – of which Rs 70,000 crore for 86 geographical areas (GA) is likely to happen under the ninth round and another Rs 50,000 crore for the 50 GAs awarded under the tenth round in March 2019.

Source
business standard
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