Monopoly in city gas sales to end soon

The Petroleum and Natural Gas Regulatory Board (PNGRB) is set to open city gas distribution (CGD) networks across the country to competition, allowing participation of more than one player in a circle. The PNGRB has finalised regulations on allowing competition in CGD areas that will be notified soon. Under the bids invited for various CGD rounds, the winner entities are given exclusivity over development of infrastructure and building the consumer base for a period of three to five years. Competition is expected to first impact Delhi and Mumbai, where Indraprastha Gas Limited and Mahanagar Gas Limited operate. Other CGD players that could face the heat of competition are Gujarat Gas and Adani Gas. Moreover, there are a number of CGD areas where the exclusivity period is coming to an end.