Oil India and Bharat Petroleum formalise JV for gas distribution in Arunachal Pradesh

State-owned oil explorer Oil India and refiner Bharat Petroleum (BPCL) formalised setting up of a joint venture company (JVC) to create a gas distribution network in Arunachal Pradesh. It would entail setting up of Compressed Natural Gas (CNG) stations in the state and providing piped natural gas (PNG) to domestic, commercial and industrial consumers. BPCL’s board had given their nod for the joint venture in October last year. Both public sector enterprises hold 50% share each in the joint venture. 

The OIL-BPCL consortium was awarded the distribution project during the 12^th round of bidding for City Gas Distribution (CGD) conducted by the Petroleum and Natural Gas Regulatory Board (PNGRB). The round which concluded March 2024 held the objective of expanding access to natural gas by offering eight geographical areas covering six northeastern States and Union Territories of Jammu & Kashmir and Ladakh.  

The Minister of State for Petroleum and Natural Gas had apprised the parliament this July that after the completion of the 12/12A CGD bidding round, PNGRB had authorised entities for development of CGD network in 307 geographical areas. Mr. Gopi had stated this covered “almost 100% of the mainland area for the development of CGD network across the country”.