New Delhi: The government watchdog, Petroleum and Natural Gas Regulatory Board (PNGRB), is considering making Indian Oil Corporation (IOC) the sole entity responsible for the creation of all natural gas infrastructure in Andaman and Nicobar islands and has floated a public consultation note on Wednesday, seeking comments from stakeholders by April 30. In line with the government’s plan to develop natural gas infrastructure and a gas-based power plant through NTPC Vidyut Vyapar Nigam (NVVN) Ltd in the Andaman and Nicobar Islands, the PNGRB is looking at ways to develop a City Gas Distribution (CGD) network there.
“PNGRB acknowledges that there may be challenges around stand-alone economic viability of CGD in Andaman and Nicobar Islands. Hence, PNGRB is evaluating an integrated model combining CGD with LNG supply for power generation, which may be a more viable solution compared to stand alone CGD,” said the note. Currently, IOC is the sole supplier of energy commodities (petrol, diesel, LPG, ATF) in the A&N islands, with established infrastructure including a POL terminal, LPG bottling plant, retail outlets, and aviation filling stations to cater to the region’s energy needs. Indian Oil has also been designated as a special agency under the Ministry of Petroleum and Natural Gas to facilitate execution of the LNG infrastructure for Andaman for the 50 MW LNG Power Plant being set up by NVVN.
Acknowledging that the integrated model may only be feasible, if Indian Oil is entrusted with the authorisation for the development of CGD network in the islands, the PNGRB said, “In light of the above, PNGRB is considering the authorisation of the GA of A&N Islands for CGD development to IOCL. However, if any other entities are interested to develop CGD network on standalone basis in A&N, the entity may apply in writing to the Board with a credible plan for development of CGD network on standalone basis, within 30 days from the date of this notice.”
The note said that the watchdog will initiate a competitive bidding process as per the provisions of the CGD authorisation rules, if applications are received from interested entities. However, in case of no application, PNGRB will initiate the process of granting authorisation for development of CGD network in Andaman and Nicobar islands to IOCL.
The total fuel consumption (diesel, petrol and LPG) for FY23 in the Andaman and Nicobar Islands was ~195 TMT (162.76 TMT diesel, 19.4 TMT petrol, 13.58 TMT LPG). Out of the total fuel consumption of ~195 TMT in FY23, Port Blair alone accounted for 53 percent of the total fuel consumption (~103.57 TMT). In Andaman and Nicobar, approximately ~45 percent (72 TMT) of total diesel consumption of ~163 TMT is used for power generation. The islands have a total installed power generation capacity of 116.5 MW, out of which diesel-based generation accounts for 82 MW and Renewable Energy (RE) accounts for 34 MW. The government is aiming to replace diesel-based power generation with gas-based power and has tasked NVVN with setting up a 50 MW gas-based power plant.
