Compressed natural gas Current Affairs - 2020

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National Policy to speed up Gas Infrastructure

A “high-level committee” has been set up by the Petroleum and Natural Gas Regulatory board (PNGRB) to frame national policy on city gas distribution. The intention of the policy is to speed up development of infrastructure of piped natural gas.


The committee formed will perform a detailed review of the issues in the development of piped gas network. The policy will also address issues like delay in getting approvals at state level. It will also identify Geographical Areas that are facing difficulties in witnessing significant progress as compared to the other regions.

The policy will include appointment of a nodal officer by the state governments to grant clearances that includes land, environment, transport, etc in a time-bound manner. It will also include procedure for timely allocation of government at concessional rates for creating City Gas Distribution  infrastructure.

Progress so far

The number of Geographical Areas with good City Gas Distribution has increased from 78 in the end of 2017 to 229 in 2019 according to the Ministry of Petroleum.

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World’s first CNG port terminal to be built in Gujarat

Gujarat government has given its approval to a Compressed Natural Gas (CNG) terminal facility at Bhavnagar port. This would be the world’s first CNG port terminal. The approval for this was given by Gujarat Infrastructure Development Board headed by Chief Minister Vijay Rupani.

World’s first CNG port terminal

Background: The Gujarat Maritime Board (GMB) had signed Memorandum of Understanding (MoU) with UK-based Foresight Group to set up this port terminal at Bhavnagar in the Vibrant Gujarat Summit held in January 2019. The existing port at Bhavnagar is administered by Gujarat Maritime Board (GMB).

Company Involved: The terminal will be jointly built by Foresight Group and Mumbai-based Padmanabh Mafatlal Group. The consortium of company will invest Rs.1,900 crore out of which Rs.1,300 crore will be invested in 1st phase and Rs.600 crore in 2nd phase.


The existing Bhavnagar port have a capacity to handle three MMTPA cargo, and new terminals would take the overall capacity to nine MMTPA.

The proposed CNG terminal at Bhavnagar port will have a cargo capacity to handle of 1.5 million metric tonne per annum (MMTPA) and will also develop facilities such as Ro-Ro terminal, liquid cargo terminal and container terminal.

Developing CNG and other terminals on north side of existing port would require major modifications in existing infrastructure, including dredging in water channel of port basin, construction of two lock gates as well as off-shore infrastructure for CNG transportation.

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