Purpose: This study aims to focus on identifying the business risks that cause a delay in the oil and gas projects and suggest the way forward toward the better development of the city gas distribution (CGD) sector in India by suggesting the appropriate mitigation strategies. Design/methodology/approach: The study is a systematic review of literature on risks causing a delay in oil and gas projects. Comprehensive literature was carried out following a seven-step model to develop an exhaustive list of risk classifications and factors, risk identification methods and strategies to mitigate the risks. Weighted average ranking method is used to identify the top ten risks affecting oil and gas projects. Findings: This research identifies the top ten risks frequently impacting the oil and gas projects, which are project cost, improper project management, change in economic parameters, currency exchange rate, government regulations and laws, contractor and subcontractors issues, lack of skilled labor, delay in approvals, health and safety issues and force majeure. These risks are primarily responsible for cost overrun and project delay. Additionally, this study recommends the implementation of joint risk management to avoid CGD project delay. Originality/value: The CGD industry is in the growing stage with many projects under construction. However, there is a lack of research to manage risks in the CGD project. This study contributes to the limited literature available on risk management in oil and gas projects. Additionally, it highlights the need for further research to explore the different risks factors affecting the CGD business and its operations and subsequently develop appropriate mitigation strategies.

Share of fossil fuel in India’s primary energy mix is around 92% with natural gas contributing 6% in it. The power, fertilizer and city gas distribution (CGD) sector are the major gas-consuming sector in India. Despite the government efforts to increase the share of natural gas in the primary energy mix, the country still has low per capita gas consumption. In order to enhance natural gas consumption in the country, the Indian government has set up a target to increase natural gas share in the energy mix to 15% by 2022. Therefore, the issue of estimation of the natural gas demand is addressed in the present paper to understand the dynamics of the natural gas market. The error correction model (ECM) is applied at a national and sectoral level to examine the domestic gas demand in India. The study reveals the following findings: (a) At the national and sectoral level, the last year gas consumption is an only statistically significant factor; (b) Price, population and income are not statistically significant at national and sectoral level and (c) Demand for natural gas is price inelastic at the national level.