PNG Adoption Drive May Launch September
Key Highlights
- The government is planning a fresh drive to accelerate PNG adoption.
- The campaign could be launched as early as September.
- The government is considering a target of up to 100,000 new PNG connections a day.
- The initiative aims to reduce India’s dependence on LPG imports and subsidy costs.
- The push will focus on households and industrial users in cities with existing CGD networks.
- Restaurants, hotels and industrial units are also being encouraged to shift from LPG to PNG.
- India currently has more than 20 million PNG-connected homes.
- Mahanagar Gas added 95,000 household PNG connections in the latest quarter.
Mumbai, August 16: The government is planning to launch another major drive to accelerate the adoption of piped natural gas (PNG) among households and industrial users, with the initiative potentially starting as early as September.
Two officials familiar with the development said the government is working on PNG Drive 3.0, aimed at increasing the pace of connections across areas where city gas distribution (CGD) infrastructure is already available.
The proposed campaign comes as India seeks to reduce its dependence on liquefied petroleum gas (LPG) imports and manage the subsidy burden associated with household cooking fuel.
Target Of 100,000 Connections Daily
The government is considering a target of up to 100,000 new PNG connections per day under the proposed drive.
City gas distribution companies are expected to play a major role in achieving the target by connecting more households and commercial establishments to existing networks.
The government had previously launched PNG adoption drives, but officials have expressed concerns over the pace of progress.
Before the disruptions caused by the war in Iran, the number of daily PNG connections had reportedly increased to around 10,000, compared with approximately 4,000-5,000 connections a month earlier.
The latest initiative is aimed at significantly increasing that pace.
Focus On Existing CGD Networks
The proposed drive is expected to concentrate on cities and areas where CGD networks are already operational but LPG usage remains high.
This approach could allow gas distribution companies to expand PNG adoption without waiting for entirely new pipeline networks to be developed.
The Ministry of Petroleum and Natural Gas is also considering another round of measures to promote PNG adoption among consumers, according to officials.
Commercial Users Also In Focus
The government is not limiting the proposed campaign to residential consumers.
Commercial users, including restaurants, hotels and industrial units, are also being encouraged to switch from LPG to PNG.
Officials believe greater commercial adoption could help increase natural gas consumption while reducing reliance on LPG in sectors where piped gas infrastructure is already available.
However, the rapid expansion of connections faces operational challenges, particularly a shortage of gas plumbers and technicians required to complete household installations.
One official said companies are continuing to work towards meeting the government’s targets despite these constraints.
More Than 20 Million Homes Connected
India currently has more than 20 million homes with PNG connections, according to the report.
A large number of households, however, continue to rely primarily on LPG for cooking.
The government therefore sees considerable scope for increasing PNG penetration in cities where CGD networks have already been established.
The expansion could also support India’s broader efforts to increase the share of natural gas in the country’s energy mix.
MGL Reports Strong Addition
Mahanagar Gas Ltd (MGL), one of India’s largest city gas distribution companies, has reported strong growth in household PNG connections.
The company added around 95,000 household connections during the latest quarter, its highest-ever quarterly addition.
MGL said the pace could increase further, with the company indicating that daily additions could rise from around 1,000 connections to 2,000 or even 3,000.
Push To Reduce LPG Dependence
The proposed PNG Drive 3.0 comes at a time when India is looking to strengthen domestic gas usage and reduce exposure to imported LPG.
Expanding PNG connections could provide households and businesses with a continuous piped fuel supply while helping shift consumption away from LPG in areas where natural gas infrastructure is available.
If the proposed September launch goes ahead, the campaign could significantly accelerate the expansion of India’s PNG network and increase the number of households and businesses using piped natural gas.
