In a striking development, India is rapidly expanding its Piped Natural Gas (PNG) network, responding to a scarcity of Liquefied Petroleum Gas (LPG) cylinders. Reports from industry leaders indicate that the number of new PNG connections has surged, effectively doubling in recent months.
Mumbai: Piped natural gas (PNG) connections in India are witnessing record additions as the country grapples with tight supplies of LPG (liquefied petroleum gas) cylinders.
Industry officials told ET that since the onset of the Iran war, new PNG connections have doubled to around 2.5 lakh, with daily additions ranging between 9,000 and 11,000 connections.
Prior to the war, new monthly additions were around 1.2 lakh with daily numbers hovering around 4,000-5,000 connections. India has a total of 1.62 crore domestic PNG connections
“India is less dependent on natural gas imports than LPG. Thus, PNG supplies have not been impacted. People are seeing the benefits of PNG, so this spike in new additions is good news,” said a senior industry official aware of the developments.
This shift has effectively freed up nearly 2.5 lakh LPG cylinders for the domestic market.
The industry expects the trend to continue, with more households likely to switch from LPG to piped natural gas in the coming months. By the end of March, the industry expects the new connections to cross three lakh or 3.5 lakh new connections.
“The spike in demand is directly linked to the tightness in LPG cylinder availability,” an industry official said. “Consumers are increasingly opting for PNG as it offers uninterrupted supply and eliminates the need for cylinder refills.”
India’s LPG supply chain has come under stress amid global uncertainties linked to the Iran war, which have affected shipping routes and availability of cargoes. While the government and oil marketing companies have been working to manage supplies, delays and shortages in certain regions have nudged consumers to consider alternatives.
“Once consumers shift to PNG, the stickiness is quite high,” another official noted. “We expect a continued uptick in conversions over the coming months, especially if LPG availability remains uneven.”
Early this week, the Petroleum and Explosives Safety Organisation (PESO) instructed its offices to clear CGD applications within 10 days to expand piped natural gas (PNG) networks faster and reduce reliance on LPG.
Commercial users in cities are also being asked to shift to PNG. The push targets bulk consumers such as restaurants, hotels and industrial units, which depend heavily on LPG. Commercial LPG supplies were temporarily curtailed and later restored in phases, gradually increasing from 20% to 70% on Friday.