CNG stations at petrol pumps not for third party access

New Delhi, November 30

CNG stations anchored on petrol pumps will not be open to third party hiring, gas regulator PNGRB has said. Also, oil marketing companies, such as Indian Oil Corp (IOC), will be barred from setting up their own CNG dispensing units in their petrol pumps that have been let out for CNG supplies to a city gas licensee.

The Petroleum and Natural Gas Regulatory Board (PNGRB) has notified the final regulations, governing open access for city gas distribution (CGD) networks whose marketing exclusivity period has ended. After the expiry of the exclusivity period, which is of minimum five years, third parties can access pipelines that carry gas within a city as well as district regulatory stations for a fee, the PNGRB said in the notification.

However, “CNG compression and dispensation related equipment and facilities” will not be shared or be part of common infrastructure, it said.

As per the law, PNGRB gives out licences to entities for the retailing of CNG to automobiles and piped natural gas to household kitchens and industrial users with a specified area. Any entity winning the licence has a period of exclusivity, after which the city is open for others to operate.

The PNGRB detailed the methodology for the determination of transportation rates for the pipelines with a city distribution network. A third party can access pipelines with the city to sell gas to an industry or a domestic consumer. They can also use the same for transporting their own fuel to a CNG station it may set up.

Citi Research said the final version of the access code appears significantly more watered down. — PTI