New Delhi: No company, except the licensee, can sell natural gas to homes and vehicle owners in a licensed area without the central government’s permission even after the city gas network has been declared a common carrier by the regulator, the oil ministry has proposed. This essentially means a city gas licensee may face automatic competition only for its industrial and commercial customers after the end of the exclusivity period while its home and super-profitable CNG business may get longer protection. Licensees get cheaper domestic gas for supply to homes and vehicles while depending on expensive imported gas for other customers. Cheap domestic gas comes mainly from old fields and its price is regulated by a government-set formula. "Third-party access for marketing natural gas to CNG (transport) and PNG (domestic) segments in an authorised geographical area, shall be allowed only when the central government finds it necessary or expedient to do so having regard to factors such as availability of domestic gas for such purpose and overall public interest," say the oil ministry's draft rules for open access to natural gas pipelines and city gas distribution network. The Petroleum and Natural Gas Regulatory Board (PNGRB) shall declare a city gas… Read full this story
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