GAIL (India) Ltd has been directed by the Ministry of Petroleum and Natural Gas to divert gas from non-priority sectors to meet requirements of compressed natural gas (CNG) and domestic piped natural gas (PNG) of various city gas distribution entities. This was notified by the Ministry on Wednesday.

This follows a Government decision of February where it had revised the guidelines for allocation and supply of domestic natural gas giving the city gas business priority. The Government notification then also said that the gas will be supplied at a uniform base price to the CNG and PNG (domestic) segments.

The Ministry on Wednesday asked GAIL to divert gas for CNG and PNG (domestic) entities by applying pro-rata cuts on allocation of non-priority sectors – like steel and petrochemicals. “GAIL is authorised to supply domestic gas 10 per cent over and above the 100 per cent requirement of CNG (transport) and domestic PNG (cooking gas) of individual CGD entity calculated as per the last half yearly consumption,” the notification said.

“Pro-rata cuts shall not be applied on supply up to a maximum of 5000 standard cubic meter to small consumers having allocation of 50,000 standard cubic meters and 1.1 mmscmd of APM gas,” the notification added.

The exercise of determining pro-rata cuts from non-priority sectors and allocation to CGD entities will have to be completed by October. The allocation will be based on the average consumption of CGD entities during the six months. This process will be repeated every six months. GAIL has also been directed to submit a compliance report to the Ministry which would give details of gas allocated to CGD sector for CNG and PNG.

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