The auction-based assignment for NWG has been replaced by a pro-type quarterly allocation to guarantee timely and reliable supply
On Friday, the Ministry of Petroleum and Natural Gas (MOPNG) said that the city’s gase distribution companies (CGD) will be assigned natural gas with two quarters to help them in a better demand prognosis, efficient supply management and guarantee the predictability of the supply.
With an approach to guaranteeing the availability and affordability or natural gas for compressed natural gas (CNG) with key segments used in transport and natural gas tuberly used in the Mopgning of the Hahangte and Hashangte and Hashangte Hashangte Gas assignment policy and Hasant-Thacehact-That-That-Thank-Thace, the Ministry.
“From the first quarter of fiscal year 26, the assignments of Domestic Natural Gas for the CNG (T) and PNG (D) segments will be carried out in an early base of two rooms. Assignment. Also assignment also now a new Gas well (NWG) from will of will to will to will be will will to will to will be will to CGD of oil oil in advance, improving planning and delivery efficiency, “he added.
In addition, the assignment based on auction for NWG has been replaced by a pro-type quarterly allocation to guarantee a timely and reliable supply. Gail will assign NWG to CGD entities in proportion to their requirements, in accordance with the prevailing Mopng guidelines.
The Ministry emphasized that despite the growing demand in the CGD sector, the domestic gases allocation relations have been mainly maintained.
For example, he said that for the third quarter of fiscal year 2015, 54.68 percent of the projected demand was assigned. Similarly, for Q1 Fy26 and Q2 Fy26, 55.68 percent and 54.74 percent of demand (projected) have been assigned.
“Since APM gas and the new gas gas well are linked to the prices of the Indian crude basket, calculated monthly, with the recent decrease in crude oil prices, this household assignment would make natural gas more affordable for CNIG.
Strategic measures
These strategic measures will lead to a greater capacity of CGD entities to predict demand and manage the offer efficiently, greater predictability of the offer and better affordability for CGD companies due to raw link prices.
These measures will ensure a stable, affordable and transparent house supply system for critical transport and national segments under the CGD network.
The development occurs after Gail had informed CGD companies around the 15-20 percent cut in the administrated price mechanism gas (APM) from April 16 due to a drop in the production in ONCC. The lost volumes were supplied from NWG.
Sehul Bhatt, director of Research at Crisil Intelligence, said that “the recent reduction in APM gas allocation for CNG will probably drive CNG players to increase prices in ₹ 1-2 per kg to maintain their margins. After the 15-20 percent reduction from the second fortnight of April, CNC players must obtain from new well gases imported “. “.” “
Besighes, the last reduction takes the cumulative reduction of the allocation from the beginning of the last prosecutor to about 45 percent amid multiple revisions. On this period, while most players have increased the prices of retail CNGs in ₹ 2-5 per kg, some have absorbed part of the increase to maintain the growth of volume despite the dent of the margins, he added.
Posted on April 18, 2025