Rosneft controlled Nayara Energy is in talks with domestic City Gas Distribution (CGD) operators to offer natural gas retailing services at its auto fuel retailing outlets. “We are in talks with Adani, IGL (Indrapastha Gas Limited) and MGL (Mahanagar Gas Limited) among others to offer compressed natural gas retailing at our petrol pumps. The new CGD geographies that are coming up are a diversification opportunity for retail outlets that have till now been offering just petrol and diesel,” a Nayara Energy official told BusinessLine at the sidelines of Petrotech - 2019.

“The gas sales will augment our petrol and diesel sales. Both auto fuel sales at Nayara have outpaced industry growth. Petrol sales have grown by 9 per cent while diesel sales are 12 per cent higher for the group,” the official said.

The Petroleum and Natural Gas Regulatory Board recently launched the tenth City Gas Distribution bidding round. After projects offered under this round are completed, about 53 per cent of India’s area covering 70 per cent of the country’s population will be connected with natural gas retailing facilities.

The successful winner in these areas on offer will have exclusive rights to the sale of Compressed Natural Gas and Piped Natural Gas for a certain period. The petrol and diesel retailers falling in this region will have to partner with the CGD operators if they want to sell natural gas at their outlets.

Nayara Energy is India’s fourth largest auto fuel retailer and the largest private fuel retailer by the number of retailing outlets. As of December 2018 end, Nayara had 5,033 petrol pumps out of total 6,577 private outlets.