1.

Concept of CGD Network: CGD networks deliver natural gas to end-users in towns and cities
through medium to low-pressure distribution pipelines, distinct from high-pressure interstate
transmission pipelines serving large industries.

2. Evolution in India: CGD in India dates back to the late 19th century, with companies like the
Calcutta Gas Company (1880) and Bombay Gas Company (1900). These early systems utilized coal
gas and biogas, respectively, evolving over time with technological advancements.

3. Demand Drivers: The demand for CGD networks is driven by urbanization, industrial growth, and
the need for cleaner energy sources. It caters to diverse sectors including automotive (CNG),
commercial, industrial, and domestic consumers.

4. Gas Transmission and Distribution Activities: CGD involves transporting small volumes of natural
gas through small diameter pipelines at low to medium pressures. It includes distribution to CNG
stations and piped natural gas for various uses.

5. Designing a CGD Network: The design involves planning routes, determining pipeline sizes, and
optimizing the network layout for efficient gas distribution. Geographic Information Systems (GIS)
play a crucial role in spatial planning and asset management.

6. **Regulatory Role**: The Petroleum & Natural Gas Regulatory Board (PNGRB) oversees the
development and operation of CGD networks in India, ensuring compliance with safety standards,
tariff regulations, and promoting fair competition.

7. **Commercial Issues**: Commercial challenges include pricing mechanisms, cost recovery,

profitability, and balancing the interests of consumers and investors. Factors like natural gas pricing
and infrastructure investment influence the viability of CGD projects.

In summary, Chapter 2 of your document covers the comprehensive aspects of CGD networks,
detailing their historical evolution, operational framework, regulatory oversight, and the strategic
role they play in India's energy landscape.