The Petroleum and Natural Gas Regulatory Board (PNGRB) has granted authorization to Gujarat Gas Company (GGCL) to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks for Surat-Bharuch-Ankleshwar Geographical Areas City Gas Distribution Network in the state of Gujarat. The authorization shall cover an area of 8,979 square kilometres.
As per the provisions of the PNGRB (Exclusivity for City or Local Natural Gas Distribution Networks) Regulation, 2008, GGCL has also been granted 25 years infrastructure exclusively up to March 31, 2014. It has also been granted three years exemption from the purview of common carrier or contract carrier (marketing exclusively) for the CGD network from the date of authorization, i.e. November 08, 2012 to November 07, 2015 during which period the project milestones as determined by the PNGRB relate to PNG Domestic connections, Steel Pipeline laying and Compression Capacity addition.
Gujarat Gas, a 65.12 per cent subsidiary of BG Asia, is India's largest private sector natural gas distribution company in terms of sales volumes, with operations in Gujarat. The company distributes natural gas to domestic, commercial and industrial consumers, and compressed natural gas as automobile fuel, in the cities of Surat, Ankleshwar, Bharuch, and surrounding areas.