In a major revamp of natural gas allocation policy, the government will give city gas projects selling CNG to automobiles and piped cooking gas to households top-most priority for receipt of domestically produced gas.
Presently, urea-manufacturing fertiliser plants have the first right over the domestically produced gas, followed by liquefied petroleum gas (LPG) plants and power stations. City gas distribution (CGD) projects are ranked fourth currently.
This priority listing is now being changed to give CGD firms like Indraprastha Gas Ltd (IGL), which sells CNG to automobiles and piped gas to households in national capital, top priority, official sources said.
CGD firms like IGL currently get 8.32 million standard cubic meters per day of gas out of total domestic supplies of about 77 mmscmd.
As city gas projects get rolled out in newer cities, the requirement of the sector will grow and so the government is now giving it top priority.