Mahanagar Gas eyes 1 million new PNG connections in FY27, capex raised

New Delhi: Mahanagar Gas Ltd (MGL) is accelerating efforts to convert households to piped natural gas (PNG), increasing its planned capital expenditure by 20% to ₹1,800 crore in this financial year and potentially tripling its daily connections to 3,000.

The company is targeting a million new PNG connections, driven by government policies pushing the transition from liquefied petroleum gas (LPG). It is increasing infrastructure spend to expand its 8,477 km network and activate one million non-consuming connections.

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The expansion comes on the back of strong operational momentum during the first quarter of the fiscal, when MGL achieved a record 97,461 domestic PNG conversions, and the company believes it can achieve the target if execution bottlenecks are removed.

"Our endeavour is to do maximum. So, we may go from 1,000 number a day to more than that as well to 3,000 also," MGL chief financial officer Rajesh Patel said on an earnings call.

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The acceleration in connections and capex comes as government policy pushes the shift from LPG to piped gas, providing an opportunity to the company to rapidly expand consumption within its existing network.