+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

Approach CGD Bidding with a Portfolio Players' Mindset Rather than an Overcommitted Aggressive Winner - Unfolding the (Cards) Hands Played By CGD Portfolio Winners

  • PDF Icon


  • 110 Pages
  • March 2020
  • Region: Global
  • Mergen Advisory
  • ID: 5007713
From those on the fence to the ones who have been there, done that would most likely agree to disagree about the merit of the PNGRB bidding mechanism or the veracity of the winning bids. Experts may continue to question PNGRB’s continued attempts on fool proofing the bidding criteria itself rather than doing further more to facilitate the development of an integrated natural gas sector across viable and not-so-viable jurisdictions alike. The reality of the situation is that any entity aspiring to become a future CGD player or having a mandate to grow its existing CGD consumer base has to put forward a winning bid – Quote the lowest, if a lowness is desired and the highest, if a highness is desired.

In a scenario, where putting a winning bid is synonymous with an overcommitted aggressive bid, an informed and self-aware CGD bidder will put together a strategic goal that goes beyond a given PNGRB bidding round or lapping the most lucrative geographical area in that bidding round. With more than a decade of witnessing CGD bidding rounds, seasoned and fresh bidders can investigate:
  • Whether bidders must only focus on GAs that presumably offer a promising gas demand
  • Whether fierce bidding for a presumably prospective GA is better than realistic bidding for an
average GA?
  • Why certain GAs could be won with realistic bidding whereas others were fiercely acquired?
  • Who were these winners and most importantly what was their outlook towards CGD industry?

The report, ‘CGD bidders’ guide to a goal based PNGRB CGD bidding - Unfolding the cards played by winners with a Game Plan’ offers fact-based insights and strategic blueprint to put together a winning business case and not simply a winning bid.

Table of Contents

1. Introduction
2. CGD Bidding Trend
  • CGD Bidding rounds and industry participation
  • Industry participation trend - established vs new players
  • Updates in Regulations and Bidding criteria
3. Profile of CGD Bidders
  • Core business
  • Location of head office and business operation centers
  • Financial strength
  • Experience in natural gas, utility business and customer service
  • Ownership structure and government/public sector stakeholdership
4. Player wise CGD bidding activity mapping
  • Rounds participated
  • Regions participated
  • Count and names of geographical areas participated
  • Win Percentage - Overall and per CGD bidding round
  • Number of GAs won vs competition
  • Number of GAs lost vs competition
5. Executive analysis of PNGRB bidding criteria
  • Lowness in tariffs (network tariff and compression charge) and PNGRB’s attempts to plug the variance
  • Inch kilometer and PNGRB’s attempts to plug the variance
  • Commitment to number of number of connections and PNGRB’s attempts to plug the variance
  • Impact of first five-year planning on bidding and PNGRB’s attempts to plug the gap via MWP
  • Impact of CNG stations as a bidding criteria and industry response
  • Pledging of bank guarantees as a tie-breaker in bidding
  • Exclusivity period vs typical payback period for CGD projects and PNBRG’s response
  • Financial eligibility as a filter for more discipline in bidding
  • Efficacy of penalties and provision for exit options
6. Analyzing top private and government backed CGD players portfolio
  • CGD GA mix acquired through fierce bidding vs realistic bidding
  • Analyzing GAs acquired through fierce bidding
  • Did the GA promise a significant gas market?
  • Did the GA promise a faster adoption/conversion to natural gas?
  • Did the GA promise a strategic business objective achievement?
  • Did the GA promise enablers such as access to natural gas supply, ease of project implementation and regulatory/government push?
  • Was the GA expected to have a fierce competition in bidding already?

Companies Mentioned

A selection of companies mentioned in this report includes:

  • IGL
  • MGL
  • GGL
  • CUGL
  • Indian Oil
  • Adani
  • GAIL
  • MoPNG
  • MNGL
  • IMC limited
  • BPCL
  • HPCL
  • Gujarat Gas
  • GSPC
  • Petronet LNG
  • Shell