Government to allocate additional 200 SCM gas in latest push for domestic PNG
The objective here is to help CGDs offset their LNG-sourcing costs which have stayed elevated as episodic tensions continue to mar supplies from West Asia.
The government announced on Tuesday evening that additional 200 standard cubic metres (SCM) of lower-priced Administered Price Mechanism (APM) natural gas will be allocated to eligible city-gas distributors (CGDs) for every incremental billed domestic-PNG connection they scale, effective September 1. This move is aimed at helping CGDs offset their LNG-sourcing costs and accelerate domestic PNG connections.
The price of LNG has been elevated due to tensions in West Asia, and India's upstream majors, OIL and ONGC, produce APM gas from their conventional fields. The incentivising mechanism will be implemented over two tranches over six months. The objective is to shorten the payback period for capital expenditure on D-PNG connections from around 10 years to approximately 3 years, incentivizing CGDs to expand household PNG connectivity rapidly and bring clean, safe, and affordable piped cooking gas to more Indian households.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
