HPCL Targets 45 Per Cent City Gas Growth In FY27
OIL & GAS

HPCL Targets 45 Per Cent City Gas Growth In FY27

Hindustan Petroleum Corp (HPCL) is targeting 45 per cent growth in its city gas distribution (CGD) business in fiscal year 2027 as it expands its customer base and pipeline network, building on 44 per cent growth in the previous year, the executive director for natural gas said. The company will focus on accelerating domestic piped natural gas (PNG) connections, expanding industrial and commercial customers and commissioning new compressed natural gas (CNG) stations to strengthen its network.

The firm is also targeting up to 25 per cent growth in the liquefied natural gas (LNG) segment after achieving around 20 per cent in the prior year. The company plans to commission around five LNG dispensing stations along major highways and freight corridors and aims to bring up to 50 CNG stations into service, particularly in Tier-II and Tier-III cities where demand is rising. HPCL is evaluating virtual pipelines to deliver LNG in cryogenic tankers to industrial and mining sites beyond pipeline reach.

The virtual pipeline model will involve transporting LNG in cryogenic tankers to customer locations where it will be stored, regasified and supplied as natural gas, enabling new demand creation without waiting for permanent pipeline connectivity. For compressed biogas (CBG) HPCL will focus on procurement and integration into existing CGD networks rather than developing standalone dispensing outlets. The firm indicated that building a well-connected, reliable and future-ready clean energy network where CNG, LNG, PNG and CBG complement each other remains the primary objective.

The West Asia conflict reinforced the company view on the importance of diversified energy sourcing and wider connectivity for PNG after around 50 per cent of India’s energy supplies were hit during the Strait of Hormuz blockade. HPCL said it is working with other oil and gas companies, state governments, original equipment manufacturers, technology providers and regulators to create a supportive framework for LNG growth. The firm reported a consolidated net loss of Rs 122.65 bn in the first quarter, compared with a net profit of Rs 41.11 bn a year earlier.

Hindustan Petroleum Corp (HPCL) is targeting 45 per cent growth in its city gas distribution (CGD) business in fiscal year 2027 as it expands its customer base and pipeline network, building on 44 per cent growth in the previous year, the executive director for natural gas said. The company will focus on accelerating domestic piped natural gas (PNG) connections, expanding industrial and commercial customers and commissioning new compressed natural gas (CNG) stations to strengthen its network. The firm is also targeting up to 25 per cent growth in the liquefied natural gas (LNG) segment after achieving around 20 per cent in the prior year. The company plans to commission around five LNG dispensing stations along major highways and freight corridors and aims to bring up to 50 CNG stations into service, particularly in Tier-II and Tier-III cities where demand is rising. HPCL is evaluating virtual pipelines to deliver LNG in cryogenic tankers to industrial and mining sites beyond pipeline reach. The virtual pipeline model will involve transporting LNG in cryogenic tankers to customer locations where it will be stored, regasified and supplied as natural gas, enabling new demand creation without waiting for permanent pipeline connectivity. For compressed biogas (CBG) HPCL will focus on procurement and integration into existing CGD networks rather than developing standalone dispensing outlets. The firm indicated that building a well-connected, reliable and future-ready clean energy network where CNG, LNG, PNG and CBG complement each other remains the primary objective. The West Asia conflict reinforced the company view on the importance of diversified energy sourcing and wider connectivity for PNG after around 50 per cent of India’s energy supplies were hit during the Strait of Hormuz blockade. HPCL said it is working with other oil and gas companies, state governments, original equipment manufacturers, technology providers and regulators to create a supportive framework for LNG growth. The firm reported a consolidated net loss of Rs 122.65 bn in the first quarter, compared with a net profit of Rs 41.11 bn a year earlier.

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