BPCL to invest Rs 10,000 cr in 6 new city gas licences
Bharat Petroleum Corporation Ltd (BPCL) on Tuesday said it will invest Rs 10,000 crore over the next five years in setting up city gas distribution networks in the cities for which it secured licences in the latest bidding round.
BPCL won licences to retail CNG to automobiles and piped natural gas for cooking purposes in six geographical areas or GAs bid out in the latest 11th bidding round of PNGRB.
''After the announcement of results of bidding, BPCL's committed investment in city gas distribution (CGD) network, on a standalone basis, would increase to over Rs 22,000 crore for development of 23 GAs, including Rs 10,000 crore for the 6 new GAs,'' BPCL said in a stock exchange filing.
''The CGD footprints of BPCL, along with its JVs, will now extend to 48 GAs covering 94 districts in 18 states, across India. Currently, with presence in 63 districts, including prominent cities, BPCL along with its JVs together hold 33% market share in the CGD sector in the country,'' it said.
Of the 61 GAs that received bids in the 11th round CGD bidding, Megha Engineering and Infrastructures Ltd got 15 licences, Adani Total Gas Ltd got 14 and state-owned Indian Oil Corporation (IOC) high potential 9 GAs.
Of the licenses it already holds, BPCL has commissioned CNG and piped natural gas supplies in various locations in Maharashtra, Uttar Pradesh, Himachal Pradesh, Punjab, and Haryana, according to the firm's latest investor presentation.
The firm's Strategic Aspirations 2022-27 plan envisages more than tripling footprint in gas in the next five years. CGD bidding is part of that plan.
The government wants to more than double the share of natural gas use, raising its share in the primary energy basket of the country from 6.2 percent at present to 15 percent by 2030. This with a view that use of environment-friendly fuel in automobiles, cooking and in industries will help cut down on carbon emissions and help meet its commitments.
BPCL, where the government is selling its entire near 53 percent shareholding, entered into the gas business through Indraprastha Gas Ltd - the joint venture firm with GAIL for city gas operations in the national capital. It forayed into bulk gas marketing with a share of gas imported by Petronet LNG Ltd at Dahej in 2018.
A year later, it formed a wholly-owned subsidiary, BGRL for ''better focus on gas business''.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)