India’s Push for Piped Natural Gas – Reducing LPG Dependence

Piped Natural Gas Latest News

• India is accelerating the shift towards piped natural gas (PNG) to reduce LPG import dependence and improve energy security. 

Types of Cooking and Transport Fuels

• India uses multiple forms of gaseous fuels for domestic and industrial purposes.
  • Liquefied Petroleum Gas (LPG) is a mixture of propane and butane obtained during oil refining and natural gas processing. 
  • Liquefied Natural Gas (LNG) is natural gas cooled to extremely low temperatures to convert it into liquid form for transport. 
  • Piped Natural Gas (PNG) is natural gas supplied directly to households through pipelines. 
  • Compressed Natural Gas (CNG) is natural gas compressed for use as a vehicular fuel. 
• Each of these fuels differs in storage, transport, and usage. LPG is cylinder-based, while PNG is pipeline-based, making it more continuous and convenient. 

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Transport and Distribution Mechanisms

• The logistics of fuel distribution differ significantly across fuel types.
  • LPG is transported in cylinders after being liquefied and pressurised, and delivered physically to households. 
  • LNG is transported through specialised carriers at extremely low temperatures and later regasified. 
  • PNG is delivered through underground pipelines directly to consumers. 
• Pipeline-based delivery reduces handling and storage risks while ensuring an uninterrupted supply. 

Why LPG Became Dominant in India

• India adopted LPG as the primary cooking fuel due to logistical convenience.
• Cylinder-based delivery is easier to implement compared to building an extensive pipeline network.
• This made LPG suitable for rapid expansion, especially under schemes like PM Ujjwala Yojana.
• However, LPG supply chains are vulnerable to disruptions, especially due to import dependence.

News Summary

• The Union Govt is actively promoting piped natural gas as an alternative to LPG, driven by concerns over import dependence and global disruptions. 
• India currently has around 33 crore LPG connections. Officials estimate that domestic natural gas production could potentially support up to 30 crore connections if households transition to PNG. 
• One of the key reasons behind this push is India’s heavy reliance on LPG imports. 
  • Nearly three-fifths of LPG demand is met through imports, with about 90% routed through the Strait of Hormuz, which has been affected by geopolitical tensions. 
• In contrast, LNG imports are more diversified globally, making natural gas a more secure option.
• The government is also taking policy measures to accelerate PNG adoption. It is expected that around 15 lakh new PNG connections will be added in the near term. 
• A major policy shift includes discouraging dual connections. Households may be required to transition fully to PNG where available, leading to an increase in PNG adoption. 
• Currently, PNG connections have crossed 1.5 crore and are expected to reach 2 crore soon. The government aims to expand this to 12 crore connections by 2034. 
• To support this expansion, India is rapidly developing pipeline infrastructure. The existing pipeline network spans about 25,000 km, with an additional 10,500 km under construction. 

Advantages of PNG

• Energy Security. Reduces dependence on LPG imports and vulnerable supply routes. 
• Convenience. Provides an uninterrupted supply without cylinder replacement. 
• Cost Efficiency. Lower logistics and handling costs in the long run. 
• Environmental Benefits. Natural gas burns cleaner than LPG and reduces emissions. 
• These advantages align with India’s broader goals of energy transition and sustainability.

Challenges in PNG Expansion

• High initial investment in pipeline infrastructure. 
• Difficulties in land acquisition and approvals. 
• Uneven geographical coverage. 
• Limited awareness and technical readiness among industrial users. 
• Additionally, India’s LNG system operates on a “just-in-time” model with limited storage, making it vulnerable to supply disruptions. 

Way Forward

• India must adopt a balanced approach for gas-based energy transition.
  • Expand pipeline infrastructure to underserved regions. 
  • Increase domestic natural gas production. 
  • Strengthen LNG import and storage capacity. 
  • Improve regulatory coordination for faster approvals. 
  • Promote awareness and technical support for industries. 

Source: TH