A recent proposal of the Petroleum and Natural Gas Regulatory Board (PNGRB) which could change the rules for exclusivity in a city gas distribution (CGD) network has been opposed by incumbent and new entrants to the sector, including foreign investors.
The move, if implemented, could give easy access to third-party companies and derail planned investment in the sector by existing CGD companies.
The regulator came out with a public notice a month ago, where it sought the views of stakeholders on the interpretation of network exclusivity, establishment and operation of LNG stations as well as supply of natural gas including LNG by any entity through virtual mode, by cascades or any other mode other than pipeline, in an authorized geographical area.
An open house in this regard was held on July 29 where various stakeholders opposed the move, said sources privy to the development.
Many CGD companies that have submitted their response to the regulator are of the view that supply of CGD including LNG can only be done by authorized CGD entities according to the PNGRB Act and Regulations.