The Minister of Petroleum and Natural Gas & Steel in India has announced the initiation of the 10th City Gas Distribution (CGD) bidding round. This new chapter in India’s energy expansion is set to encompass 50 Geographical Areas (GAs) across 124 districts.
The Impact of the 10th CGD Round
With the conclusion of the 10th round, the CGD will extend its reach to over 70% of the country’s population, covering 52.73% of the area. The CGD, which has been granted ‘Public Utility’ status, plays a pivotal role in promoting the use of cleaner fuels. The wider development and function of CGD networks will bolster the availability of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) as cooking and transport fuels. Consequently, the environmental footprint of such utilities will significantly decrease.
India’s Position in the Global Energy Market
As the world’s 3rd largest energy consumer, India’s energy consumption behavior is projected to top global charts within a decade. However, currently, the share of gas in the country’s energy mix is a meager 6.2%, a stark contrast compared to the 24% seen globally.
But in recent developments, the Government has outlined ambitions to boost the share of natural gas in the energy mix to 15% by 2030.
Domestic Gas Production and Consumption
In the fiscal year 2018-19, India’s domestic gas production was reported at 32.87 billion cubic meters. This figure is anticipated to swell to approximately 39.3 billion cubic meters by the end of the fiscal year 2020-21.
The government’s strategy is to enhance the current Liquefied Natural Gas (LNG) terminal capacity of 38.8 Million Metric Tonne Per Annum (MMTPA) by almost 35%, taking it up to 52.5 MMTPA within the next three to four years.
Furthermore, as part of the overarching plan, the National Gas Grid – currently clocking in at 16,788 km is expected to almost double, adding an additional 14,788 km.
Key Facts about India’s Energy Landscape
Here’s a quick look at some noteworthy facts and figures about India’s energy landscape:
| Energy Source | Current stats | Projected stats |
|---|---|---|
| Natural gas share in the energy mix | 6.2% | 15% by 2030 |
| Domestic gas production | 32.87 billion cubic meters (2018-19) | 39.3 billion cubic meters (2020-21) |
| LNG Terminal Capacity | 38.8 MMTPA | 52.5 MMTPA (in next 3-4 years) |
| National Gas Grid | 16,788 km | 31,576 km (including expansion) |
Future Outlook for India’s Energy Sector
The initiation of the 10th CGD bidding round marks a significant milestone for India’s energy sector. As India works toward adjusting its energy mix and expanding its CGD network, it steps closer to becoming a leading global energy consumer with sustainable and clean energy sources.