IGL-Northern Railway deal: 22 Delhi-NCR sites to replace daily use of LPG and diesel PNG- Details inside

Indraprastha Gas Ltd (IGL) has tied up with the Delhi Division of Northern Railway to replace LPG and diesel consumption with Pipeline Natural Gas (PNG) at 22 railway facilities across Delhi-NCR.

Under the agreement, IGL will initially supply around 3,000 standard cubic meters of natural gas per day (SCMD). This is expected to replace the daily consumption of around 500 kg of LPG and 2,500 liters of diesel, the company said in a statement.

The initiative is part of IGL’s efforts to expand the adoption of natural gas under the government’s PNG Drive 3.0. The redevelopment will cover railway facilities such as mechanized laundries, officers’ rest rooms, base kitchens, establishments, subordinate rest areas and guard and ticket inspector lobbies at Delhi, Ghaziabad and Gautam Buddha Nagar.

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Which stations and facilities will switch to PNG?

Five mechanized laundries in Delhi Sarai Rohilla, Old Delhi, Anand Vihar Terminal, Hazrat Nizamuddin and New Delhi will switch to PNG for boiler operation.

Other facilities covered by the agreement include kitchens and accommodation facilities used by railway officials and employees.

IGL expects natural gas consumption under this deal to grow to 8,000-10,000 SCMD in the coming years as pipeline infrastructure and connectivity improves in its permitted geographies, including Ajmer, Banda, Rewari and Muzaffarnagar.

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The agreement was signed on Friday in the presence of senior representatives of both organizations. Its goal is to expand the use of natural gas among institutional and commercial consumers while reducing dependence on conventional fuels.

IGL says the rail partnership can reduce dependence on imported fuels

IGL Chairman Subhankar Sen said the collaboration could help Indian railways replace significant quantities of LPG with natural gas and reduce their dependence on imported fuels.

“This partnership brings together two major organizations committed to nation building. Indian Railways has chosen IGL as its collaborative partner to replace LPG PNG and this MoU will facilitate the replacement of significant quantities of LPG with natural gas, thereby helping to reduce import dependency and related subsidy burden,” Sen said.

He added that the partnership could create an opportunity to expand the transition from LPG to PNG within the wider Indian Railways network.

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Delhi Divisional Railway Manager Pushpesh Raman Tripathi said the switch would help the national carrier reduce energy costs. He also hinted that PNG’s connectivity could be extended to railway hospitals and residential colonies in the future.

“This MoU will help Indian Railways to reduce substantial energy costs and we also plan to extend PNG connectivity to railway hospitals and residential colonies in the future,” Tripathi said.

IGL offers ₹2,000 off to support PNG home connection

The rail deal comes as IGL ramps up efforts to expand PNG’s household connectivity under the government’s National PNG Drive 3.0 programme.

On October 28, the company announced promotional incentives, including a ₹2,000 off standard PNG domestic registration fees and ₹Gas worth 500 free after activating the connection.

The offer is aimed at promoting new registrations and conversions to piped gas in Delhi-NCR and other authorized IGL areas. The company also conducts awareness programs and works with residents’ social associations and apartment owners’ bodies to expand household connectivity.

IGL CEO Kumar Shanker said the initiative aims to expand pipeline natural gas to more institutional consumers. He added that structured outreach and partnership with residential associations will help accelerate household connectivity.

IGL operates over 30,000 km of pipelines in 11 geographical areas

IGL operates urban gas distribution networks in 34 districts in 11 geographical regions covering Delhi, Uttar Pradesh, Haryana and Rajasthan.

Its infrastructure includes more than 30,000 km of pipelines and over 1,000 CNG stations. The company serves more than 2.5 million CNG vehicles and nearly 3.5 million households connected to PNG.

The rail partnership is expected to expand the use of natural gas among institutional consumers. PNG offers continuous pipeline supply and reduces the need to handle and store LPG and diesel cylinders.

However, the actual cost and emissions benefits will depend on fuel prices, consumption patterns, end-use efficiency and the fuels being replaced.

The deal could also provide a model for expanding PNG connectivity to other rail facilities, while IGL’s household incentives are aimed at increasing adoption among domestic consumers.