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Economics April 21, 2026 5 min read Daily brief · #18 of 21

India ramps up PNG adoption with over 5 lakh new connections

Since March 2026, more than 5.01 lakh new Piped Natural Gas (PNG) connections have been gasified (supply commenced) and over 5.68 lakh customers registered f...

GS Paper 3 (Infrastructure Energy Indian Economy)

What Happened

  • Since March 2026, more than 5.01 lakh new Piped Natural Gas (PNG) connections have been gasified (supply commenced) and over 5.68 lakh customers registered for new connections, as India accelerates the shift away from LPG amid supply disruptions caused by the West Asia conflict.
  • The conflict has impacted LPG supply chains (LPG is primarily derived from crude oil and natural gas processing); the government has directed households within PNG reach to shift to piped gas and has fast-tracked pipeline approvals.
  • The Petroleum and Natural Gas Regulatory Board (PNGRB) has extended a nationwide PNG expansion drive until June 30, 2026.
  • Approximately 39,400 PNG consumers have surrendered their LPG connections, while domestic LPG supply has been stabilised with no dry-outs at distributorships — online bookings at 98% and delivery authentication up to 92%.

Static Topic Bridges

City Gas Distribution (CGD) Network

City Gas Distribution (CGD) refers to the network infrastructure that distributes natural gas within a city or district — through high-pressure trunk lines down to medium-pressure distribution mains and finally to low-pressure service pipes connecting individual households (PNG) and CNG (Compressed Natural Gas) fuelling stations.

  • CGD networks are regulated by the Petroleum and Natural Gas Regulatory Board (PNGRB), established under the PNGRB Act, 2006
  • PNGRB awards Geographical Areas (GAs) — exclusive licenses — to CGD entities through a competitive bidding process; each GA covers one or more districts
  • As of early 2026, CGD licenses have been awarded for over 300 GAs covering 600+ districts across India
  • Major CGD companies: Indraprastha Gas Ltd (IGL, Delhi/NCR), Mahanagar Gas Ltd (MGL, Mumbai), GAIL Gas Ltd, Gujarat Gas Ltd, IOAGPL (IOCL-Adani joint venture), Bharat Petroleum Corporation Ltd (BPCL)
  • Natural gas supplied through CGD comes from domestic fields (ONGC, RIL-BP) and imported Liquefied Natural Gas (LNG) regasified at coastal terminals

Connection to this news: The government's PNG expansion push — including faster pipeline approvals and regulatory support from PNGRB — is being executed through India's existing CGD licensees, who are being directed to prioritise new PNG connections at an accelerated pace.

PNG vs. CNG: Distinctions and Uses

Both PNG and CNG are forms of natural gas delivered through the CGD network, but they serve different end-uses and involve different delivery pressures.

  • PNG (Piped Natural Gas): Gas delivered at low pressure directly to household/commercial burner tips via underground pipelines; replaces LPG cylinders for cooking and water heating; billed monthly by consumption (volume)
  • CNG (Compressed Natural Gas): Natural gas compressed to very high pressure (~200 bar) and dispensed at fuelling stations for use in vehicles (cars, buses, autos); replaces petrol/diesel in transport
  • PNG is safer than LPG (lighter than air, disperses upward in case of leaks; LPG is heavier than air and pools at ground level)
  • PNG supply is continuous (no refilling required) and typically cheaper than LPG per unit of energy
  • The CGD network serves both PNG (domestic/commercial piped supply) and CNG (vehicle fuel) from the same gas trunk infrastructure

Connection to this news: The government's directive to LPG users within PNG reach to shift to piped gas leverages the existing CGD infrastructure. PNG expansion directly reduces India's LPG dependence — a major import (from West Asia processing of crude) — while CNG in the transport segment reduces oil dependence.

PNGRB: Role and Powers

The Petroleum and Natural Gas Regulatory Board (PNGRB) is the statutory regulator for the downstream petroleum and natural gas sector, established under the PNGRB Act, 2006. It is the nodal authority for CGD licensing, pipeline tariff regulation, and access to gas infrastructure.

  • PNGRB grants authorisation for CGD entities to develop and operate networks within specified Geographical Areas (GAs) — the license confers exclusivity during a period of network build-out
  • The board determines the tariffs and charges for pipeline transportation and CGD networks
  • PNGRB oversees the mandatory work programme commitments (steel pipe networks, CNG stations, PNG connections) that licensees must fulfil
  • Under the 11th CGD Bidding Round (2021–22), PNGRB awarded licenses covering 61 GAs across 16 states/UTs — adding substantially to the geographic coverage of CGD networks
  • The PNGRB Act also mandates open access to pipelines, allowing third parties to use infrastructure on regulated terms

Connection to this news: The PNGRB's decision to extend the nationwide PNG expansion drive until June 30, 2026 — combined with faster approval for pipeline laying — reflects the regulator's operational response to the supply emergency, using its existing statutory powers over CGD licensees.

LPG Supply Chain and India's Import Dependence

Liquefied Petroleum Gas (LPG) is a mixture of propane and butane, produced as a by-product of crude oil refining and natural gas processing. India is the world's second-largest LPG consumer (after the US) and a significant importer, as domestic refinery LPG output does not fully meet demand.

  • India imports LPG primarily from Gulf Cooperation Council (GCC) countries and the US; West Asia disruption directly squeezes import availability
  • The Pradhan Mantri Ujjwala Yojana (PMUY) has connected over 10 crore below-poverty-line (BPL) households to LPG, making LPG supply continuity a social welfare priority
  • Commercial LPG (19-kg cylinders) and domestic LPG (14.2-kg cylinders) operate under different subsidy and pricing regimes
  • The government has maintained domestic LPG supply stability through rationing of commercial LPG (availability raised to ~70% of pre-crisis levels), doubling daily supplies of 5-kg cylinders for migrant workers, and pushing delivery authentication codes to curb diversion
  • PNG expansion is the long-term structural solution to reducing household LPG dependence

Connection to this news: The immediate supply pressure on LPG from the West Asia crisis is directly driving the emergency acceleration of PNG connections — making what would ordinarily be a gradual infrastructure expansion into an urgent, government-directed priority with operational targets and regulatory deadlines.

Key Facts & Data

  • New PNG connections gasified since March 2026: over 5.01 lakh (501,000+)
  • New PNG consumers registered: over 5.68 lakh (568,000+)
  • PNG consumers who surrendered LPG connections (up to April 19): ~39,400
  • LPG online bookings: 98% of transactions across the industry
  • LPG delivery authentication code-based supply: ~92%
  • Commercial LPG availability: ~70% of pre-crisis levels
  • 5-kg LPG cylinders sold since late March 2026: over 19.2 lakh
  • Commercial LPG sold (April 1–20, 2026): ~123,680 tonnes (~65 lakh 19-kg cylinders)
  • PNGRB PNG expansion drive extended to: June 30, 2026
  • CGD licensing: PNGRB awards Geographical Area (GA) licenses under PNGRB Act, 2006
  • Major CGD companies: IGL (Delhi/NCR), MGL (Mumbai), GAIL Gas, Gujarat Gas, BPCL
  • PMUY connections: over 10 crore BPL households
On this page
  1. What Happened
  2. Static Topic Bridges
  3. City Gas Distribution (CGD) Network
  4. PNG vs. CNG: Distinctions and Uses
  5. PNGRB: Role and Powers
  6. LPG Supply Chain and India's Import Dependence
  7. Key Facts & Data
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