Good news for non-GAIL gas firms

Vol 12, PW 8 (04 Sep 08) News in Brief

Companies already selling piped natural gas and CNG, but not affiliated to GAIL, can expect letters this week from the gas regulator on what they need to do to be formally recognised as CGD network operators.

“Letters are being dispatched to existing CGD operators who have sought authorisation from the (Petroleum and Natural Gas Regulatory) Board,â€‌ confirms a Board source. Among the non-GAIL companies that have applied to the Board for authorisation are GSPC subsidiary GSPC Gas, BG subsidiary Gujarat Gas, Adani Energy and Charottar Gas.

GSPC Gas was the first company to apply in May, followed by Adani Energy in July. "These companies will be treated separately from companies that want to set up new networks,â€‌ adds the source.

The authorisation process for existing CGD operators will involve defining the geographical boundaries within which they operate. “This will be done through a process of dialogue and negotiation."