Why India is Pushing Piped Natural Gas (PNG)

India is increasingly focusing on expanding Piped Natural Gas (PNG) across cities as part of its broader strategy to transition towards cleaner energy, reduce import dependence, and modernise urban infrastructure.

The push comes at a time when global energy markets are volatile, and India is heavily dependent on imported Liquefied Petroleum Gas (LPG) for household cooking needs.

By promoting PNG, the government aims to create a more sustainable, efficient, and secure energy ecosystem.

What is PNG and How Does It Work?

Piped Natural Gas (PNG) is natural gas supplied directly to homes through a network of underground pipelines, similar to water supply systems.

Key features of PNG:

• Continuous supply of gas through pipelines
• No need for cylinders or refills
• Meter-based billing based on consumption

PNG is part of the City Gas Distribution (CGD) network, which is being expanded across India.

What is LPG and Why Has It Been Preferred?

LPG (Liquefied Petroleum Gas) has been the dominant cooking fuel in India for decades.

Reasons for LPG’s popularity:

• Easy to store and transport in cylinders
• Widely available even in remote areas
• Supported by government subsidy schemes

Programs like Ujjwala Yojana have significantly increased LPG penetration, especially in rural India.

PNG vs LPG: Key Differences

Convenience

• PNG: Continuous supply, no refills required
• LPG: Requires booking and cylinder replacement

Safety

• PNG: Lighter than air, disperses quickly
• LPG: Heavier, can accumulate and pose risks

Cost

• PNG is often cheaper in the long run due to metered usage
• LPG involves lump-sum payments per cylinder

Infrastructure

• PNG requires pipeline connectivity
• LPG can be used anywhere without pipelines

Can PNG Replace LPG for Cooking?

While PNG has several advantages, it is unlikely to completely replace LPG in the near term.

Reasons include:

• Limited pipeline infrastructure
• High cost of network expansion
• Difficulty in reaching rural and remote areas

PNG is more suitable for urban and semi-urban regions, whereas LPG remains essential for rural India.

How LNG is Transported and Used

Natural gas used in PNG often originates as Liquefied Natural Gas (LNG).

Process:

1. Natural gas is cooled to liquid form for transport
2. Transported via ships to LNG terminals
3. Regasified into natural gas
4. Supplied through pipelines to cities and homes

India imports a significant portion of its gas as LNG.

What is Holding Back PNG Expansion?

Despite government push, several challenges remain:

Infrastructure Costs

Building pipelines requires huge investment and time.

Urban Constraints

Dense cities face challenges in laying underground pipelines.

Regulatory Issues

Multiple approvals can delay projects.

Demand Uncertainty

Companies need sufficient demand to justify investments.

Can Domestic Gas Production Meet Demand?

India’s domestic gas production is limited compared to demand.

Current situation:

• Heavy reliance on LNG imports
• Domestic fields contribute only a portion of total demand

While efforts are being made to increase production, imports will continue to play a key role in the near future.

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