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India has a total of 33 million LPG connections. Recently, Anjan Kumar Mishra, secretary of the Petroleum and Natural Gas Regulatory Board, said that domestic natural gas production alone could cover 30 million connections if everyone switched to piped natural gas (PNG).
What is the difference between LPG, LNG, PNG and CNG?
LPG is a by-product of oil refining and natural gas processing. This means that its production depends on the processing of both oil and natural gas.
Liquefied natural gas (LNG), as the name suggests, is natural gas that has been cooled below -160 degrees Celsius to turn it into a liquid for transportation. Liquefaction reduces its volume 1000 times.
Compressed natural gas (CNG) is primarily used as a vehicle fuel. It involves compressing natural gas to a pressure of 200-250 kg/cm² (g) to reduce its volume and enable efficient distribution.
How are LPG and natural gas transported to the user?
Propane and butane gases are mixed, compressed and cooled to below 40 degrees Celsius and then transported from the source to consumer countries via ships. LPG is bottled and physically delivered to customers.
Pipeline natural gas is transported through pipelines. Before that, imported natural gas is liquefied and transported via LNG carriers. “LNG carriers use special cargo tanks and insulation systems designed for ultra-low temperatures,” Mitsui OSK Lines told The Hindu. “Simply put, the basic job is to get a very cool liquid onto the ship while keeping it from getting too hot.”
At the destination, the LNG is re-gasified and transported by pipeline to the final consumer.
Last mile delivery of LPG is easier through cylinders that are transported by trucks and tricycles than building a vast pipeline network to cover every natural gas household. This was the key reason why India adopted LPG for domestic cooking.
Why now the gas pressure from the pipeline against LPG?
India’s dependence on LPG imports is currently higher. For natural gas, for example, India’s annual imports last year were about 27 million tons of LNG, and production was roughly the same, according to government data. On the other hand, India – until recently – imported three-fifths of its LPG requirements, 90% of which went through the Strait of Hormuz, which is now blocked due to the war in West Asia. Typical annual LPG consumption is 34 million tonnes, of which 12 million tonnes are produced in India.
If the gas is to be imported, LNG has many more sources around the world. India was largely dependent on Saudi Arabia and Qatar for LPG and supplies had to pass through the strait to reach India. “Over the next few years, large natural gas liquefaction facilities worldwide will come online, so availability should be healthy,” said Prashant Vasisht, ICRA senior vice president.
Can natural gas replace LPG directly?
Natural gas is much lighter than LPG. But one kilogram of natural gas can deliver more energy than one kilogram of LPG. For cooking purposes, these differences are not significant, so PNG is a substitute for LPG.
However, in industrial use, the device may need to be tuned to a different setting or even changed. For example, LPG is widely used by MSMEs for welding and cutting. Reports from the field suggest that while the government is encouraging industrial users to switch, a lack of awareness and technical know-how may be hindering adoption.
How is the government pushing for natural gas?
On March 26, The Hind learned from senior government officials that India could add another 15 million new PNG connections over the next two weeks.
The official said the introduction of last-mile connectivity amid unfavorable urban infrastructure in certain areas was among the major hurdles in expanding the pipeline network.
To speed it up, the Center through a gazette notification introduced provisions to help speed up implementation, which included, among other things, specific timelines for approving pipeline extensions in residential and non-residential areas.
The Ministry of Petroleum and Natural Gas (MoPNG) has told a parliamentary standing committee reviewing its grant request for the 2026-2027 fiscal year that it is aiming to build a pipeline network to cover 12 million PNG connections by 2034.
In an earlier report, the committee had asked the ministry to help City Gas Distribution (CGD) entities overcome difficulties in carrying out expansion such as obtaining permits, land, bidding criteria and NOC requirements from local authorities.
In cities like Maharashtra or Coimbatore in Tamil Nadu, where the GAIL pipeline runs nearby, the government is now pushing for pipeline infrastructure for local distribution.
In December, the government announced that India’s gas pipeline network is about 25,000 kilometers long, with another 10,500 kilometers under construction. The government is also ensuring that PNG prices remain competitive with LPG.
“PNG connections have now exceeded 1.5 million. The recent Government Gazette announcement reinforces this direction and mandates that households cannot have both LPG and PNG connections. As a result, roughly 6 million households will be asked to give up their LPG connections and fully switch to PNG within a three-month time frame. This will soon bring total PNG household connections in Sstad Rystad, Senior Vcroreice, Senior Manstad 2.” From 2020-21 the compound annual growth rate of connections was approximately 18%. A CAGR of 24% would be required to reach 12 million connections by 2034-35,” he added.
What are the challenges?
GAIL’s pipeline network is currently concentrated in western and northern India, with some coverage in Kerala and Bengaluru. The more than 10,000 kilometers under construction cover tier 2 and 3 cities in parts of central and eastern India, as well as some parts of Tamil Nadu connecting to the Bengaluru section and one section heading northeast. However, large areas in central, southern and northeastern India remain uncovered. The arrangement of the gas pipeline network is further intended to serve industrial needs rather than households.
The government aggressively granted licenses to CGDs that would cover more than 300 geographical areas covering households, small scale industries, hotels and restaurants. So far, about 90 of them are still not connected to the main main pipeline. Last mile connectivity remains an immediate challenge.
Even if the projection of 12 million PNG connections is realized in the next 10 years, LPG connections will still be more than 20 million, so India will have to import a significant amount of LPG.
A little less than 30% of natural gas consumption goes to fertilizer production, while power plants account for 13% and city gas distribution around 20%, ICRA’s Mr. Vasisht said. About 35% goes to sectors such as refineries and industries.
A major shift away from these sectors, such as energy, may be needed to meet the demand for cooking gas. Mr. Vasisht said industrial consumers can switch to diesel and heating oil.
PNGRB Secretary Mr. Mishra said that currently about 1.2 million PNG connections consume three million metric standard cubic meters of gas every day.
To deliver 13 million connections, India will need to increase domestic production by at least one-third.
Industry observers say an increase in domestic production from Oil and Natural Gas Corporation (ONGC) fields is possible. Rystad Energy anticipates a 25% increase.
For example, ONGC started production in the KG-DWN 98/2 block in the KG basin in 2024. The field’s peak production is expected to be more than 10 million metric standard cubic meters of gas per day, which would increase India’s total gas production by 10% today. Site officials expect Block 98/2 to increase ONGC’s gas production by 15% through additional wells. If natural gas consumption increases, it will likely be necessary to increase imports via LNG. India has about nine import terminals covering both coasts.
It will have to really speed up the pipeline network to take advantage of imports. In addition, India’s LNG system is even more of a just-in-time system than LPG with little long-term storage, unlike Europe. Any disruption to imports will have an immediate impact on availability.
(With inputs from Saptaparno Ghosh and Appala Naidu)





