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regular-article-logo Thursday, 02 May 2024

Bidding starts for Northeast, J&K city gas network, USD 4.5 billion investment expected

The Northeast accounts for about 20 per cent of the country’s total natural gas output of 75 million standard cubic metres per day

R. Suryamurthy New Delhi Published 27.11.23, 09:48 AM
Representational image

Representational image File picture

Bids to set up city gas networks in the Northeast and Jammu & Kashmir have commenced with Mizoram.

Licences issued under the 12th round of bidding are expected to bring investments worth $4.5 billion.

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The Northeast accounts for about 20 per cent of the country’s total natural gas output of 75 million standard cubic metres per day.

Assam, Arunachal Pradesh and Tripura have established gas production potential, while Manipur and Nagaland are believed to have substantial reserves.

The regulator, the Petroleum and Natural Gas Regulatory Board, has issued the two-stage bid document for interested parties.

The officials said that there would be a pre-bid meeting on December 27 and query resolution would continue till January 25, 2024. The bids would have to be submitted by February 23 and the technical bids would be opened on February 26.

The financial bid opening “shall be intimated to entities whose technical bids are qualified”, they added.

In the bidding round, the government has offered seven geographical areas in five states and two union territories, covering 92 districts.

The five states include Arunachal Pradesh, Meghalaya, Manipur, Nagaland and Sikkim.
They said electronic bidding for other GAs would open soon as the PNGRB intends to finalise the award by March.

After the latest round, Mizoram, Andaman & Nicobar and Lakshadweep are the only regions which would not have access to CGD networks.

The regulator anticipates a sharp jump in daily gas sales in the next five years to 150 MMSCMD (Million Metric Standard Cubic Meters per Day) from 35 mscmd.

Duliajan plan

As part of the pipeline projects, Duliajan Numaligarh Pipeline Limited has proposed one from Duliajan to Chandrapur near Guwahati via Jorhat, Golaghat, Karbi Anglong and Nagaon.

DNP operates a dedicated pipeline supplying natural gas to the Numaligarh refinery.

The company said there is a huge business opportunity of around 5.5 MMSCMD demand with a new pipeline which needs to be laid to target the city gas operators and other bulk consumers.

The government aims to increase the share of natural gas in the country’s energy mix to 15 per cent by 2030.

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