Date for receiving proposal extended for second time

The City Gas Development project in Ernakulam is set to be delayed. The Petroleum and Natural Gas Regulatory Board (PNGRB), the authorized agency for inviting tenders for executing the project, has extended the date for receiving proposals. As per the revised schedule, the bids for the project will be closed only on July 10. The project is to be implemented in 14 geographical areas, including Ernakulam. This is the second time that the date is being extended. The bids were earlier scheduled to be closed in February this year, which was later extended to May 12.

The successful bidder will have to develop infrastructure for piped natural gas supply to domestic consumers, including homes, hostels and hotels. The project is being awaited by a large number of people who are dissatisfied with the LPG supply by various oil marketing companies.

An alternative to cooking gas in the form of piped natural gas (PNG) is being welcomed by a large number of consumers. The recent process for linking Aadhaar had further complicated matters in LPG supply. Petroleum Minister Veerappa Moily, during his visit to Kochi a few months ago, had promised to make arrangements to provide City Gas project in Ernakulam at the earliest. It was meant to be a partial relief to the LNG project based in Kochi which is facing severe problems due to low capacity utilization.

Further delay in executing the City Gas project will add to the woes of LNG terminal, which is already in the process of leasing out part of its storage capacity to prospective operators in a bid to make the project viable.

More In: Kochi