Tag: piped natural gas (PNG)

Oil regulator PNGRB launches drive to increase piped gas adoption

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Oil regulator PNGRB has launched a two-month-long nationwide drive to increase the adoption of piped natural gas as a cooking fuel in household kitchens in an attempt to cut dependence on imported fossil fuels.

“The Petroleum and Natural Gas Regulatory Board (PNGRB) along with city gas distribution entities will run a campaign from January 26 to March 31, aimed to promote the adoption of piped natural gas (PNG) among households and to expand PNG consumer base across a broader segment of the population,” it said in a statement.

While PNG has gained currency in the last few years after PNGRB expanded city gas networks to most parts of the country, sizable households continue to use either LPG or conventional fuels like firewood and cow dung for cooking.

While India is about 50% dependent on imports to meet cooking gas LPG needs, the use of conventional fuels is considered a health hazard.

PNG offers a viable alternative. It is convenient as it does not require ordering refills every time an LPG bottle is exhausted and is also cheaper.

Stating that natural gas is a clean and convenient fossil fuel, PNGRB said the campaign will be focussed on those areas where the gas pipeline network has been laid or will be laid in the immediate future.

The promotion of natural gas is part of the Prime Minister’s vision to increase its share in India’s energy basket to 15% by 2030, from the current 6.2% to transform the country into a gas-based economy.

“PNGRB is taking various initiatives to promote natural gas in households as cooking fuel as well as in transport, commercial, and industrial sectors,” the statement said.

“National PNG Drive is one amongst them to facilitate the supply of natural gas to existing registered customers besides enrolling customers for new PNG connections.” City Gas Distribution (CGD) entities will actively participate in the National PNG drive, and undertake various promotional activities to increase awareness of the use of PNG—a clean, environmentally friendly, safe, and reliable fuel.

Indraprastha Gas Ltd (IGL) is partnering with PNGRB for the drive in the national capital. Other CGD entities are doing the same in other cities.

“During the campaign period, CGD entities will launch various promotional schemes. In addition, the entities will undertake door-to-door campaigns, organize road shows etc to encourage and enroll customers for conversion to PNG,” it said.

To date there are 300 geographical areas (GAs) authoriesd in the country, covering 98% of the population and 88% of its area for the development of CGD Network.

“The targets up to 2032 inter alia includes installation of 12.5 crore domestic PNG connections, establishment of 17,751 CNG stations,” the statement said.

As of November 30, 2023, 1.2 crore domestic PNG connections and 6,159 CNG stations have been established in the country.

“The National PNG Drive solicits collective efforts of all stakeholders, state governments, and local bodies to promote sustainable and clean energy solutions across the nation to meet the said objectives,” it added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IGL shares recover from day’s low after PNG prices hiked in Delhi NCR

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Shares of Indraprastha Gas Limited (IGL) climbed nearly 2 percent from the day’s low intraday after the company hiked the price of piped cooking gas (PNG) to household kitchens in the national capital and adjoining cities.

At 12:38 pm shares of IGL were trading at Rs 357.15, up 1.59 percent from the previous close on the BSE.

On Friday, PNG price was increased by Rs 2.63 per unit to “offset input gas cost”, marking the second increase in less than two weeks. On July 26, rates were revised by Rs 2.1 per standard cubic meter (scm).

IGL, the firm that retails CNG to automobiles and piped cooking gas to households in the national capital and adjoining towns, notified through a tweet that piped cooking gas in Delhi would now cost Rs 50.59 per standard cubic meter. Earlier it was Rs 47.96.

In order to partially offset the increase in input gas cost, the price of domestic PNG in Delhi is being revised to Rs.50.59/- per SCM, w.e.f.,5th August 2022.

— Indraprastha Gas Ltd (@IGLSocial) August 4, 2022

Also read: Dabur India shares trade higher as food and retail business aids revenue

As a result of the government mandating the use of costlier LNG to meet increased demand, the price of LNG has increased. State-owned GAIL averages out the rates of gas produced locally with the imported one before supplying to city gas retailers like IGL.

Gas produced locally is averaged out by state-owned GAIL against imported gas before being supplied to city gas retailers like IGL. Other parts of the country have been affected by similar increases in piped cooking gas.

In Mumbai, Mahanagar Gas Ltd hiked CNG and PNG prices.

“Due to the significant increase in input gas cost, we have decided to recover the cost. Accordingly, we have increased the retail price of CNG by Rs 6 per kg to Rs 86 per kg and hiked domestic PNG by Rs 4 per unit to Rs 52.50 in and around Mumbai,” MGL said in a statement as reported by news agency PTI.

Also read: Britannia shares under pressure as inflation and volume drop eats into profitability

However, IGL has not increased CNG price and it continues to cost Rs 75.61 per kg. IGL said PNG in Noida, Greater Noida and Ghaziabad, which ad-join Delhi, would cost Rs 50.46 per scm, while in Gurugram it would be priced at Rs 48.79 per scm.

India imports liquefied natural gas (LNG) to meet roughly half of its natural gas needs due to insufficient domestic production. In the wake of Russia’s invasion of Ukraine, international LNG rates shot to record highs while domestic gas prices increased to $6.10 per million British thermal units. Currently, LNG costs upwards of $30 on the spot or current market.

(With inputs from PTI)

Catch latest market updates with CNBCTV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Construction material firm’s see margins, capacity utilization under pressure

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Input prices have been on the rise globally as well as locally and the recent hike in the price of compressed natural gas (CNG) in Gujarat. Gujarat Gas has raised CNG price by Rs 2.58 per kg to almost Rs 80 a kg, along with an increase in domestic piped natural gas (PNG) price. 

This implies, that many industries will have to pay more for inputs, which in turn will impact their profitability.

In an interview with CNBC-TV18, Keshav Bhajanka, executive director of Century Plyboards and Raju Patel, committee member of Morbi Ceramic Association discussed the demand trends amid spiking commodity costs.

Bhajanka said, “For us, CNG prices are not that relevant because we are more or less on biomass or on coal in certain locations.” 

Having said that, plywood raw material prices have spiked by more than 10 percent, laminates by closer to 20 percent, MDF close to or above 20 percent, he said, adding that however, by virtue of being market leaders, the firm has been able to pass these costs on. 

“There is a time lag and in the short-term, there will be a hit in profitability, but in the long-term, I do not think there will be any meaningful impact on either demand or margin,” he said.

He also sees good opportunity in capex because the industry or some players facing constraints due to working capital but Century Plyboards has a very strong balance sheet and has provisioned for all capex initiatives well in advance, he said. Bhajanka added that the firm’s plans remain on track. “In fact, we are trying to prepone some of them. Hopefully, we will be able to get our capacities on perhaps sooner than expected,” said.

Also Read: Power crisis likely to worsen in as many as 12 states due to low coal stocks

Meanwhile, Patel said it is difficult to pass on the price hike immediately. “Overnight price increase of tiles will be a bit difficult for us to pass on to the customer. The industry, presently, is running almost at 60 percent capacity utilization and at the same time the supply of gas is 80 percent instead of 100 percent requirement,” he said.

Also Read: Govt urges states to import coal for up to 10% blending for uninterrupted power supply

On capacity, he said his firm has been utilising 60-70 percent capacity since October 2021.

For the entire discussion, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

GAIL says complete pass-through of gas price hikes not possible; LPG rate to go up

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

AK Tiwari, director of finance at GAIL, on Friday, said that liquefied petroleum gas prices will see an increase due to higher domestic gas prices.

The government on Thursday, September 30, announced a 62 percent hike in the price of natural gas, which is used to produce electricity and is turned into CNG to use as fuel in automobiles and cooking gas for household kitchens.

This is the first hike since April 2019 when the price was at $1.79 per Metric Million British Thermal Unit (mmBtu). The revision, which is in line with the expectation of a 60 to 70 percent hike, comes on the back of a surge in global gas prices.

Also Read: Expect spurt in global gas prices to be temporary; prefer ONGC, Oil India, IGL: JM Financial

The hike comes as a positive for gas producers like Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL), however, it may prove to be negative for gas distribution companies like IGL and MGL and also power companies that use gas as an input as the revision could mean higher input costs.

“The gas prices determined is a reflection of global higher prices. Therefore, the impact of higher prices on the turnover though LPG prices, unit prices will increase, but LPG prices, as well as petrochemical prices, are on a high trend, so we are going to compensate and our topline, as well as the bottomline, will be up as we presume,” Tiwari said, in an interview to CNBC-TV18.

Also Read: Domestic natural gas price hiked by 62% to $2.90 for October 2021 to March 2022 period

On price hike, he said, “The price in fertiliser, as well as piped natural gas (PNG) and compressed natural gas (CNG), will be marginally higher and it cannot be passed-through altogether.”

He further mentioned that with more hikes expected, it won’t be completely possible to pass it on.

For the entire interview, watch the video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Record 2.72 lakh new PNG connections provided in FY20: Indraprastha Gas

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Indraprastha Gas Ltd, the gas retailer in the national capital and cities around it, on Monday said it gave out record 2.72 lakh new connections for piped cooking gas to household kitchens during the financial year 2019-20. Also, the firm set up 55 new CNG stations during April 2019 and March 2020, taking the total number of CNG stations set to 557.

This was announced by IGL Chairman P K Gupta while addressing the shareholders at the 21st annual general meeting (AGM) of the company. “In line with the massive push by the government to expand CNG and piped natural gas (PNG) infrastructure across the country, IGL provided a record number of 2.72 lakh new PNG connections in 2019-20 in its areas of operation,” the company said in a statement.

Addressing the shareholders, Gupta said that driven by higher volumes, the net profit of IGL rose 44 per cent in 2019-20 to Rs 1,137 crores. During 2019-20, total sales volume grew 9 per cent over the previous year with CNG recording 8.4 per cent growth in volumes and PNG recording volume growth of 12 per cent.

The consolidated profit after tax (PAT) of IGL after considering the contribution of the associate companies, namely Central UP Gas Ltd (CUGL) and Maharashtra Natural Gas Ltd (MNGL), was Rs 1,249 crores in 2019-20. Giving an overview of future plans, he said the firm will consolidate its presence in existing areas as well as expand in new geographical areas.

IGL, he said, has been aligning its strategy to seize the emerging opportunities in the city gas distribution (CGD) sector and to meet the future challenges. Reiterating IGL’s commitment to maintaining uninterrupted gas supply to its customers despite the challenges in the current financial year due to the onset of the pandemic, Gupta said IGL will continue its best efforts for growth and expansion of its network.

IGL, he said, has drawn up plans to set up new CNG stations and create pipeline infrastructure in its current areas of operations as well as newly acquired areas. The price differential of CNG versus alternate fuel, the spread of CNG infrastructure in new geographical areas and building of green corridors will continue to drive the conversion of petrol-driven private vehicles to CNG mode, he said.

Gupta said IGL is aiming to improve upon its record in domestic PNG connections with stiff targets. Speaking about the supply of natural gas to the industrial sector, he expressed confidence that court orders to replace furnace oil and petcoke with natural gas shall continue to drive growth in this segment.

IGL is also working on plans to set upLNG/L-CNG stations, provide consultancy services in setting up CGD projects, manufacturing of gas meters, promote uses of natural gas in home appliances and also explore new business avenues, he said. The shareholders approved a dividend of 140 per cent at the AGM.

IGL has a city gas license to sell CNG to automobiles and PNG to households in Delhi, Noida, Greater Noida, Ghaziabad (in Uttar Pradesh), Rewari, Gurugram, Karnal, Kaithal, Fatehpur and Muzaffarnagar. It sells CNG to over 11.5 lakh vehicles in NCR through a network of 557 CNG stations. It also supplies PNG to nearly 14 lakh households in these cities.

The pipeline network is being further expanded by IGL to cover Ajmer, Pali and Rajsamand in Rajasthan, Shamli, parts of Meerut, Hamirpur and parts of Kanpur in Uttar Pradesh.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow