Guwahati: The Petroleum and Natural Gas Regulatory Board (PNGRB), established by the Government of India in 2006, is spearheading the growth of natural gas infrastructure in the Northeastern region with an aim to enhance energy accessibility and sustainability.
PNGRB is trying to ensure widespread access to natural gas while promoting private sector participation to boost industrial growth and reduce reliance on traditional fuels, directly supporting India’s transition toward a gas-based economy.
During an exclusive interview with Business North East (BNE), A.K. Tiwari, a member of the Petroleum and Natural Gas Regulatory Board (PNGRB), discussed key developments, challenges, and strategies for accelerating natural gas adoption in the northeastern region.
Excerpts from the Q&A interview at the recently held two-day Knowledge Sharing Workshop on ‘Strengthening Safety in the City Gas Distribution (CGD) Network’ in Guwahati -
BNE: What initiatives have been taken by PNGRB to expand the CGD network to tier-two and tier-three cities, especially in the Northeast region?
A.K. Tiwari: PNGRB has introduced various regulatory reforms and initiatives to expand gas consumption across the country, particularly through main trunk pipeline authorisation that covers the entire country, including the Northeastern region, via the Northeastern Gas Grid. This initiative ensures gas consumption and pipeline infrastructure development in this region.
Secondly, PNGRB has authorised more than 307 geographical areas across the country, covering all states. Specifically, in the Northeastern region, every state is now covered under the authorisation of geographical areas, with 12 geographical areas already authorised in the region. With the establishment of the Northeastern Gas Grid main trunk pipeline, which connects with the northern part of the country, gas availability and consumption are expected to increase significantly.
PNGRB has also implemented tariff reforms, introducing the ‘One Nation, One Grid, One Tariff’ policy, effective April 1, 2023. This reform is likely to boost gas consumption in the region.
BNE: How is PNGRB shaping its policies to promote private sector participation in the oil and gas sector?
A.K. Tiwari: Out of the 307 authorised geographical areas, approximately 50 per cent are managed by public sector entities and joint ventures involving the public sector, while the remaining 50 per cent are handled by private sector companies. Furthermore, Foreign Direct Investments (FDIs) have been attracted through these authorisations, demonstrating that both public and private sectors are actively participating in expanding natural gas infrastructure across the country.
PNGRB's policies on gas allocation, tariffs, pricing, LNG terminal strategies, and other initiatives aim to facilitate natural gas consumption. We are engaging with state officials to address issues CGD companies face - such as permissions, charges, VAT reduction, and GST inclusion in natural gas.
Our goal is to achieve a Compound Annual Growth Rate (CAGR) of 10 per cent in the CGD sector by 2040. Currently, gas consumption stands at around 40 MMSCMD, and we estimate it will reach over 160 MMSCMD by 2040.
The workshop focuses on safety aspects, which are crucial for CGD companies due to their expansive operational areas. PNGRB has a safety committee that provides recommendations, and we are working on creating a robust regulatory framework for safety. This workshop aims to help CGD companies develop a strong safety culture while implementing the regulations effectively.
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BNE: How is PNGRB supporting India's transition toward a gas-based economy and meeting net-zero goals?
A.K. Tiwari: Increasing natural gas consumption will reduce reliance on other fossil fuels, making natural gas an essential transition fuel. Achieving net zero is a significant target, and while absolute net zero may not be entirely realistic, our efforts aim to reduce carbon emissions significantly.
We aim to lower the country's carbon footprint and move toward realistic net-zero goals through the government's initiatives promoting gas consumption. Natural gas plays a critical role in this transition by serving as a cleaner and more sustainable energy source.
BNE: What are the steps taken to fast-track natural gas infrastructure development, such as pipelines, to reach remote areas like the Northeast?
A.K. Tiwari: The Northeastern Gas Grid, currently under development, will connect every state in the region. CGD companies are responsible for laying an extensive network of pipelines, or a 'spider net,' within their geographical areas. These pipelines will support the consumption of PNG (piped natural gas) and CNG (compressed natural gas) in industrial, commercial, household, and transport sectors.
These government-backed initiatives and the targets set for CGD companies are expected to significantly enhance gas penetration in the Northeast and other remote areas, ensuring greater accessibility and usage across various sectors.
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