India’s Push for Piped Natural Gas (PNG)

Why in News?

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.
• Last-mile connectivity – Urban congestion and regulatory hurdles delay pipeline laying.
• 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.

Reference

The Hindu| India Pushing for Piped Gas