India is witnessing a significant policy shift in its domestic energy ecosystem, with a growing emphasis on expanding Piped Natural Gas (PNG) connections.
What is LPG, LNG, PNG, and CNG?
Liquefied Petroleum Gas (LPG) – A mixture of propane and butane.
Produced as a by-product of crude oil refining and natural gas processing.
Stored in cylinders and delivered physically to households.
Widely used for cooking due to ease of transport and distribution.
Liquefied Natural Gas (LNG) – Natural gas cooled to below –160°C to convert it into liquid form.
Volume reduces by ~1000 times, making it suitable for long-distance shipping.
Imported via specialized LNG carriers and regasified at terminals.
Piped Natural Gas (PNG) – Natural gas delivered directly to households through pipelines.
Considered a cleaner and more efficient fuel for cooking.
Eliminates the need for cylinder storage and manual refilling.
Compressed Natural Gas (CNG) – Natural gas compressed to high pressure (200–250 kg/cm²).
Primarily used as a transportation fuel.
Reason for LPG adoption – India’s large-scale adoption of LPG was driven by logistical convenience:
Ease of last-mile delivery through cylinders.
Lower infrastructure requirements compared to pipelines.
Suitability for rural and semi-urban areas.
Building a nationwide pipeline network was historically capital-intensive and time-consuming, making LPG a practical solution
What is the reasons for shifting to PNG?
High import dependence on LPG – India imports a significant portion of its LPG requirements:
Annual consumption – 34 million tonnes.
Domestic production – 12 million tonnes.
Around 60% is imported, largely from West Asia.
Recent geopolitical tensions, especially disruptions in the Strait of Hormuz, have exposed vulnerabilities in LPG supply chains.
Diversified supply sources for natural gas – LNG can be sourced globally, unlike LPG which is concentrated in a few regions.
Global LNG liquefaction capacity is expanding, ensuring better availability.
India imported ~27 million tonnes of LNG last year, comparable to domestic production.
Energy security and strategic autonomy – PNG reduces dependence on:
Maritime chokepoints.
Limited supplier nations.
Domestic production, led by entities like Oil and Natural Gas Corporation (ONGC), is also expected to increase, strengthening self-reliance.
Economic and consumer benefits – PNG is often cheaper than LPG in urban areas.
Continuous supply eliminates booking delays.
Safer due to lower density (disperses quickly if leaked).
Environmental considerations – Natural gas is a cleaner fossil fuel:
Lower carbon emissions.
Minimal particulate matter.
Helps India meet climate commitments.
Feasibility of replacing LPG by PNG
Domestic Use
PNG can act as a drop-in replacement for LPG.
Energy differences are negligible for cooking purposes.
Industrial Use – Requires retrofitting or recalibration of equipment.
MSMEs face barriers due to:
Lack of awareness.
Technical limitations.
What are the government initiatives to promote png?
Expansion of pipeline infrastructure
Existing network: ~25,000 km.
Under construction: ~10,500 km.
Policy reforms
Faster approvals for pipeline expansion.
Mandated timelines for infrastructure development.
Target setting
12 crore PNG connections by 2034.
Current connections: ~1.5 crore.
Regulatory push
Households discouraged from holding both LPG and PNG connections.
Expected migration of ~60 lakh households to PNG.
Role of city gas distribution (CGD)
Licenses granted for over 300 geographical areas.
Focus on urban and semi-urban expansion.
What are the challenges in expanding PNG?
Infrastructure constraints – Pipeline network concentrated in western and northern India.
Many regions in central, southern, and northeastern India lack connectivity.
Permissions, land acquisition, and NOCs remain bottlenecks.
Supply constraints – Current domestic production insufficient for large-scale transition.
Increasing PNG demand may divert gas from:
Fertilizer sector (~30% usage)
Power sector (~13%)
Industries (~35%)
Import dependency for LNG – LNG imports may increase to meet demand.
India lacks long-term storage capacity, unlike Europe.
System operates on a just-in-time supply model, making it vulnerable.
Industrial adaptation issues – Industries using LPG (e.g., welding) need equipment changes.
Resistance due to cost and lack of technical expertise.
What are the future prospects?
Increase in domestic production – ONGC’s KG basin projects expected to boost output by 10–15%.
Potential 25% increase projected by industry analysts.
Expansion of LNG terminals – India already has ~9 LNG import terminals.
Further expansion will support rising demand.
Policy and regulatory support – Continued reforms by Ministry of Petroleum and Natural Gas (MoPNG).
Support from Petroleum and Natural Gas Regulatory Board in easing infrastructure rollout.
What lies ahead?
India’s push toward PNG reflects a strategic shift aimed at enhancing energy security, reducing import dependence, and promoting cleaner fuel usage.
While LPG will continue to dominate in the near term—given its vast existing base of over 30 crore connections—the gradual expansion of PNG represents a forward-looking transition.
However, success will depend on overcoming infrastructural bottlenecks, ensuring adequate gas supply, and facilitating industrial adaptation.
A balanced, phased approach integrating both LPG and PNG will be crucial for achieving India’s long-term energy goals.
