Context:

1. Prime Minister Narendra Modi will lay the foundation stone for City Gas Distribution (CGD) projects across 129 districts to boost availability of gas supply for half of the country’s population in 26 states and Union Territories.
2. The projects, recently awarded by the Petroleum and Natural Gas Regulatory Board (PNGRB) would cover 65 Geographical Areas (GAs) under the ninth round of bidding.

Significance:

• Government of India has put thrust to promote the usage of environment friendly clean fuel i.e. natural gas as a fuel/feedstock across the country to move towards a gas based economy.
• Accordingly, development of CGD networks has been focused to increase the availability of cleaner cooking fuel (i.e. PNG) and transportation fuel (i.e. CNG) to the citizens of the country. The expansion of CGD network will also benefit to industrial and commercial units by ensuring the uninterrupted supply of natural gas.

Why Natural Gas?

• Natural gas is a superior fuel as compared with coal and other liquid fuels being an environment friendly, safer and cheaper fuel. Natural Gas is supplied through pipelines just like one gets water from the tap. There is no need to store cylinders in the kitchen and thus saves space.
• Natural Gas (as CNG) is cheaper by 60% as compared with petrol and 45 % w.r.t. Diesel. Similarly, Natural Gas (as PNG) is cheaper by 40 % as compared with market price LPG and price of PNG almost matches with that of subsidised LPG (based on prices in Delhi).

PNGRB:

• The Petroleum and Natural Gas Regulatory Board (PNGRB) was constituted under The Petroleum and Natural Gas Regulatory Board Act, 2006.
• The Act provide for the establishment of Petroleum and Natural Gas Regulatory Board to protect the interests of consumers and entities engaged in specified activities relating to petroleum, petroleum products and natural gas and to promote competitive markets and for matters connected therewith or incidental thereto.
• The board has also been mandated to regulate the refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas excluding production of crude oil and natural gas so as and to ensure uninterrupted and adequate supply of petroleum, petroleum products and natural gas in all parts of the country.