In a recent development, the Petroleum and Natural Gas Regulatory Board (PNGRB) has declined Adani Total Gas Ltd’s request for a license to distribute compressed natural gas (CNG) for automobiles and piped gas for household kitchens in Noida, a city on the outskirts of the national capital. The rejection came on the grounds that Adani Total Gas Ltd failed to meet the required criteria as per the law.
The PNGRB issued an order on July 14, stating that Adani Total Gas Ltd did not fulfill the necessary legal requirements, leading to the dismissal of their application. This decision comes as a significant setback for Adani, as the company has been striving to obtain a city gas distribution (CGD) license for cities neighboring the national capital for almost two decades.
Adani Total Gas Ltd, a joint venture between the Adani Group and French energy major TotalEnergies, had set its sights on expanding its presence in the rapidly growing CGD market in the region. The company’s ambition was to provide CNG to automobiles and piped gas to household kitchens in Noida, catering to the rising demand for cleaner energy options. However, the PNGRB’s rejection has put a halt to their plans for now.
The PNGRB, established under the Petroleum and Natural Gas Regulatory Board Act, 2006, is responsible for regulating the downstream petroleum and natural gas sector in India. The board’s primary objective is to protect the interests of consumers while ensuring fair competition and promoting a level playing field for all participants in the market.
To obtain a CGD license, applicants are required to meet specific criteria set by the PNGRB, which include technical, financial, and operational capabilities. The board thoroughly evaluates these aspects to ensure that only qualified entities are granted licenses, thereby maintaining the quality and safety standards of gas distribution.
Adani Total Gas Ltd’s failure to meet the necessary criteria highlights the stringent regulations in place to safeguard the interests of consumers and maintain industry standards. The decision reflects the PNGRB’s commitment to upholding transparency and fairness in the licensing process.
This rejection comes at a time when the demand for natural gas is increasing due to its cleaner and more environmentally friendly characteristics compared to conventional fuels. With the government’s push for cleaner energy sources and the rising concerns over air pollution, CNG has emerged as a popular alternative for automobile fuel. Piped gas for household kitchens is also gaining traction as a cleaner and more convenient option compared to traditional cooking fuels.
While Adani Total Gas Ltd’s application has been rejected for now, the company may have the opportunity to reapply after addressing the deficiencies identified by the PNGRB. It is crucial for companies seeking CGD licenses to fulfill the regulatory requirements to ensure a safe and efficient gas distribution system for consumers.
The decision by the PNGRB serves as a reminder to aspiring entities in the CGD sector to adhere to the prescribed guidelines and meet the necessary qualifications. This ensures that only competent players with the ability to provide reliable and high-quality gas services are granted licenses, ultimately benefiting consumers and promoting a sustainable energy future.
