TNGCL Seeks Funds For Natural Gas Network Expansion, Project Likely To Begin Next Year

Guwahati: One of the fastest-growing natural gas distribution companies, Tripura Natural Gas Company Limited (TNGCL), is expanding its operations to meet the rising demand for eco-friendly and cost-effective natural gas. With a strong track record of 100 per cent reliability in gas supply, TNGCL remains committed to safe and uninterrupted services backed by robust safety protocols and environmental sustainability initiatives.
 
Recently, Business North East (BNE) spoke to Pralay Patra, Managing Director of Tripura Natural Gas Company Limited, regarding their upcoming plans to expand its distribution network beyond Agartala and enhance customer satisfaction with quality, value-added services in the two-day Knowledge Sharing Workshop on ‘Strengthening Safety in the City Gas Distribution (CGD) Network.

Here are the excerpts from the Q&A interview:

BNE: How is PNGRB working towards increasing natural gas consumption across India, and what role does Northeast play?

Pralay Patra: The Petroleum and Natural Gas Regulatory Board (PNGRB) is committed to increasing natural gas consumption in India's energy mix. Currently, natural gas accounts for 6.5 per cent of the total energy consumption, and the target is to increase this to 15 per cent by 2030.

PNGRB has authorised various City Gas Distribution (CGD) entities across India to achieve this. The recent event 'Strengthening Safety in the City Gas Distribution (CGD) Network' held in Guwahati specifically focused on the Northeast region, where CGD companies are building infrastructure. The workshop sensitised stakeholders about safety hazards involved in infrastructure development, and industry experts shared the best practices to ensure safe and efficient construction of CNG infrastructure.

BNE: What steps has Tripura Natural Gas Company Limited (TNGCL) taken to expand its distribution network and ensure natural gas availability in Tripura?

Pralay Patra: TNGCL has authorisation in three geographical areas in Tripura, and there is a growing demand for natural gas. We are continuously expanding our infrastructure, and CNG consumption is growing at a rate of 15 per cent per year. Similarly, there is an increase in demand for domestic gas connections, so we are scaling up our infrastructure accordingly.

Apart from Tripura, we have also secured authorisation in Manipur and Mizoram, where we will develop infrastructure to provide natural gas benefits to the population in these states.

BNE: What is the status of the project?

Pralay Patra: The project has not yet started. We have completed viability and feasibility studies. We will proceed with the actual physical work once these evaluations are finalised. The project will begin in the next financial year.

BNE: What are the key challenges in natural gas distribution, and how is TNGCL addressing them?

Pralay Patra: The biggest challenge in natural gas distribution is affordability. Domestic production of natural gas is declining, and the growing demand is being met through imported Liquefied Natural Gas (LNG), which is costly.

Although the government prioritises the CGD sector for domestic gas allocation, the expansion of CGD companies is outpacing the increase in domestic gas production. As a result, the share of domestically produced gas is decreasing, leading to price volatility in the coming years.

ALSO READ: PNGRB Speeds Up Natural Gas Expansion In Northeast, Boosts Infrastructure, Private Investment

BNE: What are TNGCL’s plans for infrastructure development? Are there any new initiatives?

Pralay Patra: Infrastructure development is a continuous process. As demand grows, particularly in the CNG sector, we are expanding our infrastructure every year. Our plans are aligned with demand projections, and we are consistently upgrading our network to meet requirements.

BNE: Can you elaborate on the Manipur and Mizoram projects?

Pralay Patra: As I mentioned earlier, the physical work on these projects has not started yet. We are currently in the financing stage, evaluating funding sources. Once that is secured, we will appoint a Project Management Consultant (PMC) to oversee the project. Only after the completion of these steps will the actual construction begin, which will take a few more months.

BNE: How is the natural gas distribution scenario in Tripura?

Pralay Patra: So far, TNGCL has met the demand for natural gas in its authorised areas. However, TNGCL has authorisation to operate in only three geographical areas in Tripura, excluding six districts where Northeast Gas Distribution Company Limited (NEGDCL) operates.