What Happened
- The Union Cabinet approved a push to promote Piped Natural Gas (PNG) connectivity for households, setting a target of 10 lakh (1 million) new domestic connections during 2025-26.
- The move comes on the back of the ongoing West Asia conflict, which has caused disruptions in LPG supply chains, nudging the government to accelerate the shift of households to PNG wherever pipeline infrastructure is available.
- The government has also notified the Natural Gas and Petroleum Products Distribution Order, 2026 under the Essential Commodities Act, providing a time-bound legal framework for laying and expanding pipelines across the country.
- As of late 2025, India had approximately 1.57 crore domestic PNG connections, with the City Gas Distribution (CGD) network authorised across 307 geographical areas.
- India's operational natural gas pipeline network stood at approximately 25,429 km as of mid-2025, with an additional 10,459 km under construction.
Static Topic Bridges
City Gas Distribution (CGD) Network in India
The City Gas Distribution (CGD) sector is India's framework for distributing natural gas at the city and district level for domestic (PNG), commercial, and transport (CNG) use. The Petroleum and Natural Gas Regulatory Board (PNGRB), established under the PNGRB Act 2006, is the statutory regulator that authorises CGD entities through competitive bidding rounds. As of 2025, 11 bidding rounds have been completed, covering 307 Geographical Areas (GAs) spanning nearly all districts of India and projected to cover 98% of the country's population when fully built out. The CGD sector contributes approximately 20% of India's total natural gas consumption.
- Regulator: PNGRB (Petroleum and Natural Gas Regulatory Board), under MoPNG.
- 307 Geographical Areas authorised for CGD development.
- Two segments: PNG (piped to homes/industry) and CNG (compressed for vehicles).
- Domestic gas allocation under "no-cut" category by government for PNG domestic and CNG.
- Projected CGD growth: ~15% annually; target to cover 98% of population.
Connection to this news: The Cabinet's 10-lakh connection target for 2025-26 is an accelerated push within the existing CGD framework — leveraging already-authorised areas to deepen last-mile household connectivity faster than the organic market rollout pace.
India's Natural Gas Pipeline Infrastructure
Natural gas reaches city distribution networks via the national gas grid — a trunk pipeline network built largely by GAIL (India) Ltd and other entities. India's pipeline length grew from 15,340 km in 2014 to over 25,400 km by mid-2025, with another 10,400+ km under active construction. The Pradhan Mantri Urja Ganga project and other schemes extended gas pipelines to eastern India and Himalayan states previously unconnected. However, large swaths of India — particularly in the northeast and interior rural areas — still lack trunk connectivity, which is the primary structural barrier to PNG expansion.
- Operational gas grid: ~25,429 km (mid-2025); under construction: ~10,459 km.
- Key pipeline operators: GAIL, HPCL-Midcon, GSPL, AGCL, TPGL.
- GAIL holds the largest share of the trunk gas transmission network.
- Pradhan Mantri Urja Ganga: extended gas connectivity to Bihar, UP, Jharkhand, Odisha, West Bengal.
Connection to this news: The PNG expansion target is dependent on existing trunk connectivity; the 10-lakh connection target is achievable in already-authorised areas with functional pipelines, but broader PNG spread remains contingent on completing the pipeline network under construction.
PNG vs LPG: Energy Transition and Policy Trade-offs
India has ~31 crore LPG connections (under the Pradhan Mantri Ujjwala Yojana and regular connections), making it the world's second-largest LPG consumer. However, LPG is imported (India imports ~50% of its LPG requirement), making it vulnerable to global price swings and geopolitical supply disruptions like the current West Asia conflict. PNG, by contrast, is delivered through a fixed pipeline network, is competitively priced versus LPG, and allows the government to supply domestic natural gas under a protected allocation. The shift from LPG to PNG is a key pillar of India's "gas-based economy" vision — targeting a rise in natural gas share of the energy mix from the current ~6% to 15% by 2030.
- India's LPG connections: ~31 crore (includes Ujjwala's ~10.35 crore BPL connections).
- ~50% of India's LPG is imported — exposed to global price and supply shocks.
- Natural gas share of India's energy mix: ~6% (target: 15% by 2030).
- PNG typically cheaper than LPG on a per-unit calorific value basis once connected.
- Ujjwala scheme: free LPG connections to BPL families; some struggle to afford refills — PNG could be more sustainable for urban and peri-urban populations.
Connection to this news: The Cabinet's push for PNG connections is both an energy security measure (reducing LPG import dependence) and a price stability tool — insulating urban consumers from LPG price volatility triggered by Middle East conflict disruptions.
Key Facts & Data
- Target: 10 lakh new domestic PNG connections in 2025-26.
- Existing domestic PNG connections (late 2025): ~1.57 crore.
- CGD areas authorised: 307 Geographical Areas (GAs) across India.
- Operational gas pipeline network: ~25,429 km; under construction: ~10,459 km.
- Natural gas share of energy mix: ~6% (target: 15% by 2030).
- Regulator: PNGRB under the PNGRB Act, 2006.
- Legal basis for new push: Natural Gas and Petroleum Products Distribution Order, 2026 (Essential Commodities Act).
- India's LPG connections: ~31 crore; ~50% of LPG demand is met through imports.