DK Sarraf predicts huge CNG consumption jump

Vol 22, PW 15 (16 May 19) Midstream & Downstream

DK Sarraf has offered himself a well-deserved pat on the back for progress  in India's retail gas sector.

At the NGV (Natural Gas Vehicles) India Summit organised by Messe Frankfurt in Delhi on May 9 the PNGRB chairman stressed that until 2017 only 18.3% of the population was covered by gas retail licences but by May 9, 2019 this had risen to more than 70%. Sarraf added that the number of areas licensed to retailers has risen from 92 covering 10.04% of India to 228 covering 53% of the country.

"All this has happened in the past 15 months with CGD-IX and CGD-X," said Sarraf, who oversaw both rounds. Unlike earlier CGD rounds, he added, decision-making was fast in the last two rounds.

"CGD-IX was concluded in four weeks and CGD-X in three weeks from the date proposals were submitted," he said. Sarraf forecast that another 8500 CNG stations would be operational to add to 1500 at present as a direct consequence of CGD-IX and CGD-X leading to a five-fold increase in CNG consumption over the next eight years from 11m cm/d to 55m cm/d by 2027-28.

In his 24-minute inaugural speech at the Lalit hotel next door to the PNGRB head office, Sarraf said there would be no shortage of gas to feed the CGD sector as domestic gas production from the east coast ramped up and more LNG terminals come on stream.