MUMBAI: City gas distribution (CGD) is poised for a big leap with the Union Petroleum Minister Murli Deora announcing that the project will be extended to 30 cities in different States by 2009 besides Mumbai and Delhi. Two hundred more cities were likely to be on the city gas distribution map in due course, Mr. Deora said.

The recent gas discoveries, the possibility of extracting gas from coal bed methane (CBM) besides initiatives to import gas would lead to a quantum jump in availability. The Government was, therefore, committed to pursue implementation of city gas distribution projects in as many cities as possible, Mr. Deora said, while addressing a press conference here on Saturday.

GAIL had identified over 30 cities in different States. The foundation for this significant development had been laid with the enactment of the Petroleum and Natural Gas Regulatory Board Act, 2006, finalisation of policy for gas pipelines and CGD projects and the constitution of a regulatory board, Mr. Deora said. U. D. Choubey, Chairman and Managing Director, GAIL India Ltd., said the city gas distribution projects would be set up on the public-private partnership (PPP) model in which GAIL and the private partner would hold 22.5 per cent stake each, the local Government five per cent and institutions and the public 50 per cent.

Agra, Kanpur, Lucknow, Faridabad, Pune, Patna, Varanasi, Ahmedabad, Sholapur, Hyderabad, Bangalore, Chennai, Kolkata, Bareilly, Rajahmundry, Vijayawada, Vadodara, Navi Mumbai, Thane, NCR Cities (Gurgaon and Noida), Allahabad, Jhansi, Mathura, Gwalior, Indore, Ujjain, Rajkot, Surendranagar, Kota and Kochi have been identified for piped gas distribution.

Mr. Chaubey indicated that GAIL was ready to acquire the LNG terminal of Ratnagiri Gas and Power Pvt. Ltd. (earlier Dabhol power project) and contended that it should be given the first opportunity to buy the asset.

"We should be given the first right of refusal in the event of a hive off,'' he added.

Mr. Deora, in reply to a question, said India would go ahead with the proposed $7.2 billion Iran-Pakistan-India gas pipeline project.

He said no country could pressurise India to abandon this project and "we are committed to this.''

The advisors were preparing a feasibility report, he added.

U.S. Energy Secretary Samuel W. Bodman, who visited India recently, said the U.S. was worried that the revenue from the proposed pipeline could be used by Iran to fund its nuclear programme.

Earlier too, the U.S. had indicated its unhappiness over India's plans to buy gas from Iran.

Mr. Deora said Pakistan had made demands on the transit and transmission fees for gas, which was high.

"We are trying to scale it down,'' he added.

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