Emerging Landscape and New Set of Opportunities, Challenges and Risks Involved in CGD Business in India



Produced by: InfraInsights
Published:  January 7, 2014
Country:  India
Sector:  Energy
Pages: 100
Format: PDF


InfraInsights closely monitors the Oil & Gas sector and has come up with reports addressing the key issues, challenges and opportunities in the sector. InfraInsights is pleased to provide a thorough analysis of the CGD Sector in India. InfraInsights has also included a preliminary analysis of the identified geographical areas in the upcoming Round 4 CGD bidding based on changes in the policy & regulatory framework, natural gas demand-supply scenario, evolving natural gas pricing scenario, reforms in alternate fuel pricing, end-user demand profile, etc.


Table of Contents:


1. Executive Summary;

2. Fundamentals of developing a CGD Project

  • CGD Infrastructure: Debriefing on the key elements and their application
  • Sub-Transmission Pipeline;
  • City Gate Station;
  • Odorization System;
  • Carbon Steel Main Ring;
  • Field Regulating Station;
  • CNG Station;
  • Piped Natural Gas;
  • Last Mile Connectivity; and
  • IT application;
  • Natural Gas Sourcing
  • Factors influencing the Natural Gas Sourcing mix;
  • Issues & Challenges in Natural Gas Sourcing
  • CGD Market
  • Profiling based on consumer segment;
  • Profiling based on quantum of gas required per consumer for the various consumer segment
  • Profiling based on affordability of consumer segment;
  • High-grading of consumer segments
  • Capital Cost
  • Listing of Capital Cost items;
  • Break-up of capital cost into material cost and implementation cost;
  • Capital outflow trend over the life of a CGD project;
  • Natural Gas Marketing
  • Approach for competitive pricing of CNG and PNG;
  • Measures for market penetration and conversion;
  • Measures for early realization of returns and demand ramp-up;

3. Present Status of CGD Projects in India

  • Evolution of CGD projects in India, based on:
  • CGD projects awarded on nomination basis: Basis of formation, Entity Structure, etc.
  • CGD projects awarded on competitive bidding basis: Basis of selection, Performance till date, etc.
  • Overview of entities & stakeholders engaged in CGD business in India and their positioning on the CGD business life cycle;
  • Gas consumption trend of existing CGD projects
  • Entity wise; and
  • Region wise
  • Gas sourcing trend of existing CGD projects
  • Entity wise; and
  • Region wise
  • Case Study covering: Business Environment, Business Models, Growth Drivers and Strategies adopted by key CGD entities in:
  • India: GSPC, IGL and MGL
  • Pakistan: Sui Gas Company
  • Bangladesh: Group Companies under Petrobangla (say: Titas gas Transmission and Distribution Company Ltd, Rupantarita Prakritik Gas Company, etc)

4. CGD Regulations

  • Evolution of CGD bidding guidelines & regulations notified by PNGRB;
  • Apparent short-falls in the earlier PNGRB regulations and their impact on previous rounds of CGD bidding;
  • Review of the solicitation and comments from stakeholders on the likely reforms in PNGRB regulations: A PNGRB initiative aimed at addressing the issues of “irrational bidding” in previous rounds of CGD Bidding;
  • Current version of PNGRB regulations on CGD bidding: Minimum Work Programme, Unbundling of activities of transportation and marketing of natural gas;
  • Consolidated view of stakeholders on the changes in the regulations;
  • Our view on the current PNGRB regulations on CGD bidding;

5. Analysis of 4th Round CGD Projects (currently under bidding)

  • Gas Consumer market profile of the various Geographical Areas (GAs) under 4th round bidding;
  • Indicative Natural Gas requirement of the various GAs based on industry benchmarks;
  • Indicative capital requirement for the various Geographical Areas based on industry benchmarks;
  • SWOT analysis of the various GAs under 4th round bidding;
  • High grading of the various Geographical Areas (GAs) under 4th round bidding based on their demand potential, conversion attractiveness, capital requirement, etc;
  • Summary of 4th Round of CGD projects, based on the overall market potential and investment size;

6. List of cities/districts likely to be covered in future rounds of CGD Bidding based on select critical parameters

7. Emerging CGD Business Models and Economics

  • Business models in CGD: Pure play infrastructure player, Pure play Gas Supplier/Trader and Integrated (infrastructure and gas supply) player
  • Impact of input gas price (based on domestic & RLNG mix, increase in domestic gas price and RLNG price) on the CGD business margins
  • Options for securing business margins on sale of PNG and CNG

8. Bidding for CGD

  • Who should Bid for the upcoming round of CGD?
  • Options to bridge the gap and make a win-win proposition
  • Risks associated with bidding for CGD project in upcoming rounds

9. CGD Business Opportunities and Market Size in the next 10 years timeframe

  • Opportunities for investment in CGD projects and typical project size in the next 10 years timeframe
  • Opportunities for Gas Pipeline Manufacturers in terms of pipeline requirement and total addressable market
  • Opportunities for Equipment Manufacturers: Critical equipment such as CNG Compressor, Pressure Reducing Skid, etc. Total addressable market size in the next 10 years timeframe
  • Opportunities for Project Management Companies in terms of addressable market size
  • Opportunities for IT Companies

10. Risks and Uncertainties associated with CGD

11. InfraInsights View Point


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