Assam Gas Company, Oil India, GAIL sign agreement for setting up of new CGD

The Energy Consortium has signed an agreement to connect 4 lakh households to Piped Natural Gas (PNG) and create an energy routing system in the North East

In a first concrete energy sprint for North East, a consortium of three Public sector units, Assam Gas Company Ltd (AGCL), Oil India Limited (OIL) and GAIL Gas Ltd on Thursday signed a joint venture agreement for incorporating a new company for implementation of the City Gas Distribution (CGD) Networks.

The Joint Venture Company has to implement the City Gas Distribution (CGD) Networks and supply Piped Natural Gas to the domestic, commercial and industrial customers and CNG (Compressed Natural Gas) to the vehicles in Kamrup, Kamrup (Metro), Cachar, Hailakandi and Karimganj districts in Assam.

The bidding process for the same has been running since 2018, wherein the Ninth CGD Bidding round, PGNRB offered 86 geographical areas in 22 states and Union territories, covering 29 per cent of population and 24 per cent of the geographical area. The extension to North East, thus, would probably create a larger impact in the region – connecting it more intrinsically to the rest of the nation.

In a statement the Government of Assam stated, “Under the persuasive follow up of the Government of Assam, the National Gas Grid Pipeline (Urja Ganga Project) which was originally planned for extension from Jagadishpur in Western Uttar Pradesh, to Haldia in West Bengal, was consented to be extended to Guwahati in Assam, by the Government of India through an intermediate spur line from Barauni in Bihar to Guwahati and the Gas Pipeline construction work is being carried out by GAIL India Limited. The Barauni to Guwahati section of the Nation Gas Grid is likely to be completed by December, 2020. Thereafter, eight states of the North East will be connected by Indradhanush Gas Grid Ltd. to the National Gas Grid.”

The Urja Ganga natural gas pipeline to Guwahati to connect the Northeast is also remarked to be operational by 2023 as per Board member S. Rath. One could even consider the energy project to set a precedence in region, which saw its first CNG station to be opened in Assam in 2017. The project also is in tow with PM Narendra Modi’s vision for a gas-based economy with new installation of 10,000 CNG pumps, and 2 cr household connections.

The project will incur a cost of Rs.1, 700 crores which. Around 95,000 households will be connected with the Piped Natural Gas (PNG) and 21 CNG stations will be set up in Cachar, Hailakandi and Karimganj districts at an estimated cost of approximately Rs. 500 crores.