Why is India Pushing Piped Gas Now?

Source: The Hindu

Introduction 

India has 33 crore LPG connections, but domestic natural gas production could theoretically serve 30 crores of them if all households switched to piped natural gas (PNG). 

• Amid an LPG supply crunch triggered by the war in West Asia disrupting the Strait of Hormuz — through which 90% of India's LPG imports were routed — the government has decided to accelerate the PNG transition. 
• Recently, the Ministry of Petroleum and Natural Gas notified the Natural Gas and Petroleum Products Distribution Order, 2026, giving the push the force of law.

What is the Difference Between LPG, PNG, LNG, and CNG? 

• LPG is a co-product of oil refining and natural gas processing, bottled in cylinders and physically delivered to consumers. 
• Liquefied Natural Gas (LNG) is natural gas cooled to below −160 degrees Celsius, reducing its volume by 1,000 times for maritime transport; it is regasified at the destination and distributed through pipelines. 
• Compressed Natural Gas (CNG) is natural gas compressed to 200–250 kg/cm² and used primarily as vehicular fuel. 
• PNG is natural gas transported directly into homes through pipelines — continuously available, without the need to book a refill. 
• For cooking, one kilogram of natural gas delivers more energy than one kilogram of LPG, and the difference is not significant enough to require appliance changes, making PNG a practical drop-in replacement.

Why has India Depended on LPG Until Now? 

• Last-mile delivery of LPG through cylinders, trucks, and tricycles has always been simpler than laying an extensive pipeline network across every household. 
• India's annual LPG consumption is 34 million tonnes, of which only 12 million tonnes are produced domestically; the rest is imported. 
• Nearly 90% of LPG imports were routed through the Strait of Hormuz, now disrupted by the West Asia conflict. 
• LNG, by contrast, can be sourced from a wider range of countries — the United States, Australia, Qatar, and others — making it a more resilient option.

What is the Government Doing? 

• Senior government officials indicated on March 26 that India could add 15 lakh new PNG connections within two weeks. 
• As of December 2025, the gas pipeline network spanned about 25,000 kilometres, with an additional 10,500 kilometres under construction. 
• PNG connections have now crossed 1.5 crore; a gazette notification mandates that households cannot hold both LPG and PNG connections simultaneously. 
• Roughly 6 million households will be required to surrender their LPG connections and transition fully to PNG within a three-month timeframe. 
• A compounded annual growth rate of 24% in connections would be needed to reach the target of 12 crore PNG connections by 2034–35.

The Legal Framework 

• The foundational regulatory structure rests on the Petroleum and Natural Gas Regulatory Board Act, 2006 (No. 19 of 2006), which established PNGRB as the statutory body for regulating the downstream oil and gas sector, including storage, transportation, distribution, and marketing. 
• The Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026, notified on March 24, 2026, was issued under the Essential Commodities Act, 1955, giving the government wider powers to ensure the availability and smooth distribution of critical energy resources. 
• Under Clause 7 of the Order, LPG supply to a household may cease after three months where: (a) the household is in an area with an available natural gas pipeline; (b) the authorised entity has issued written communication by registered or speed post; and (c) the household has failed to apply for a PNG connection within the stipulated period. 
• The same consequence applies at the colony level — if a housing society or RWA blocks pipeline laying and the authorised entity issues the prescribed public notice, LPG supply to all households in that area may stop three months from the notice date, regardless of whether individual households wanted PNG or not. 
• All public authorities — including central and state government departments, urban local bodies, and municipal corporations — must grant pipeline permissions within fixed timelines, failing which approvals are treated as deemed clearances; timelines range from 10 days for smaller city gas distribution networks to 60 working days for large transmission pipelines. 
• Public authorities are barred from imposing arbitrary taxes, levies, or charges beyond standardised fees specified in the Order's schedules. 
• Authorised entities that obtain permissions but fail to lay pipelines within four months will be considered in default and face penalties, including possible removal of their area exclusivity. 
• PNGRB has been designated the nodal agency to monitor implementation, track approvals and rejections, and ensure compliance; designated officers are empowered with powers similar to a civil court to resolve right-of-way disputes. 
• Exceptions exist: LPG supply will not cease if the authorised entity issues a No-Objection Certificate stating that providing a piped connection is technically infeasible; the NOC must be withdrawn once piped gas supply becomes operational.

What are the Challenges? 

• The GAIL pipeline network is currently concentrated in western and northern India, with some coverage in Kerala and Bengaluru; large parts of central, southern, and northeastern India remain uncovered. 
• Even if 12 crore PNG connections are achieved by 2034–35, over 20 crore LPG connections would still exist, requiring India to continue importing significant LPG quantities. 
• Less than 30% of natural gas use goes into making fertilisers, while power plants account for 13% and city gas distribution around 20%; a major diversion from industrial and power sectors would be needed to meet household cooking demand. 
• India's LNG system offers little long-term storage — it is more just-in-time than LPG — meaning any disruption in imports has an immediate impact on supply. 
• Domestic production would need to rise by at least one-third to supply 13 crore PNG connections; ONGC's new KG basin block offers some promise, but a 25% production increase is the realistic ceiling without significant new investment.

Conclusion 

The government's PNG push highlights a growing tension between the urgency of energy security and the practical limits of infrastructure. The Natural Gas and Petroleum Products Distribution Order, 2026, backed by the Essential Commodities Act, marks one of the most significant shifts in India's energy distribution framework in recent years. Its mandatory compliance timelines, deemed clearance provisions, and penalties for non-laying entities signal serious legislative intent. Whether the infrastructure — pipelines, domestic production, and LNG import terminals — can keep pace with the legislation is the question that will define India's energy story through the next decade.