Centre fast-tracks PNG push, anticipating prolonged LPG crunch

New Delhi: The Centre has issued a notification to expedite the rollout of natural gas infrastructure, aiming to shift more LPG consumers to piped natural gas (PNG) as it anticipates prolonged supply constraints in both LPG and natural gas due to the Iran war.

The order, issued under the Essential Commodities Act, seeks to move LPG users in areas served by gas pipelines to PNG, thereby freeing up LPG supplies for regions without pipeline access, the notification said.

“Constraints are being faced and are expected to be faced for long time in relation to the supply and distribution of both LPG and natural gas on account of extensive damage to and suspension of operations of the liquefaction facilities in the Gulf region that supply liquefied natural gas to India and the continued blockage of the Strait of Hormuz as such events require fuel diversification as a mitigation for long term energy security,” the government said.


The order sets a 10–60-day timeline for state governments and local bodies to grant approvals for laying various types of gas pipelines, and prescribes uniform charges for such infrastructure. Authorities must approve or reject applications from city gas companies within this timeframe.

“Approvals from various authorities, imposition of very high fee and charges and at times denial of access to land or residential areas,” have been cited as key impediments to pipeline rollout.

India has about 1.6 crore PNG household connections, of which only around 1 crore are active. Many consumers have meters installed but no gas supply, either due to a lack of last-mile connectivity or unwillingness to switch. City gas companies have consistently missed their connection targets under licensing conditions.