India's gas consumption increase twofold to 189 MMSCMD

07 Aug 2024 CW Team

The city gas distribution (CGD) sector has seen significant progress, with national gas consumption rising from 86 million metric standard cubic metres per day (MMSCMD) in 2007 to 189 MMSCMD today. Correspondingly, the national gas pipeline network has expanded from 14,000 km in 2018 to 24,000 km.

This growth is largely driven by increased industrial and commercial use of Regasified Liquefied Natural Gas (RLNG), and CNG infrastructure has also expanded, with the number of CNG stations rising from 280 in 2006 to 7,000 in 2024.

However, challenges persist, particularly in the adoption of PNG for domestic use, which currently has 13.1 million connections. Singh acknowledged the difficulties in replacing LPG with PNG due to consumer hesitancy and connection costs. To address these issues, PNGRB is working with state governments to resolve tax discrepancies and infrastructure hurdles. "We are discussing ways to reduce taxes with state officials," Singh noted.

Singh assured that there are no significant supply constraints, with a balanced mix of 52% domestic gas and 48% RLNG meeting current demand. Insights from Deepak Mahurkar, Partner-Fuels & Resources at PwC India, highlighted that customer economics, primarily cost, drive gas adoption. He emphasised the government's dual objectives of boosting gas consumption and lowering supply chain carbon costs.

The summit also introduced a joint FICCI-PwC Knowledge Paper titled ?Charting the Path Forward in CGD: Emerging Trends and Insights,? which offers an in-depth analysis of the sector?s challenges and opportunities in natural gas adoption.

(ET)

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

At the FICCI City Gas Distribution Summit 2024, Gajendra Singh, a member of the Petroleum and Natural Gas Regulatory Board (PNGRB), underscored the regulator?s dedication to expanding gas accessibility across India. Our objective is to ensure gas availability for all consumers, including those using Piped Natural Gas (PNG), industrial and commercial sectors, and Compressed Natural Gas (CNG), Singh stated. The city gas distribution (CGD) sector has seen significant progress, with national gas consumption rising from 86 million metric standard cubic metres per day (MMSCMD) in 2007 to 189 MMSCMD today. Correspondingly, the national gas pipeline network has expanded from 14,000 km in 2018 to 24,000 km. This growth is largely driven by increased industrial and commercial use of Regasified Liquefied Natural Gas (RLNG), and CNG infrastructure has also expanded, with the number of CNG stations rising from 280 in 2006 to 7,000 in 2024. However, challenges persist, particularly in the adoption of PNG for domestic use, which currently has 13.1 million connections. Singh acknowledged the difficulties in replacing LPG with PNG due to consumer hesitancy and connection costs. To address these issues, PNGRB is working with state governments to resolve tax discrepancies and infrastructure hurdles. We are discussing ways to reduce taxes with state officials, Singh noted. Singh assured that there are no significant supply constraints, with a balanced mix of 52% domestic gas and 48% RLNG meeting current demand. Insights from Deepak Mahurkar, Partner-Fuels & Resources at PwC India, highlighted that customer economics, primarily cost, drive gas adoption. He emphasised the government's dual objectives of boosting gas consumption and lowering supply chain carbon costs. The summit also introduced a joint FICCI-PwC Knowledge Paper titled ?Charting the Path Forward in CGD: Emerging Trends and Insights,? which offers an in-depth analysis of the sector?s challenges and opportunities in natural gas adoption. (ET)

Resources

26 Jun 2026

G R Infraprojects Founder Vinod Agarwal Passes Away

Vinod Kumar Agarwal, Founder and Promoter of G R Infraprojects, has passed away. He had been associated with the company since its inception in 1995. His vision, determination and entrepreneurial acumen laid the foundation for the company and helped shape its growth into a leading name in India’s infrastructure sector.Agarwal served as Managing Director from 2008 to 2021 and later as Chairman and Whole-time Director from 2021 to 2025. He stepped down from the office of Director on 10 November 2025. During his leadership tenure, the company moved through significant phases of growth, operatio..

Infrastructure Energy

25 Jun 2026

Centre Prioritising Energy Security With Coal Gasification

Union minister for Coal and Mines G Kishan Reddy said the Centre is prioritising energy security through a strategic shift to coal gasification and has announced incentives totalling Rs 460 billion (bn) to support the effort. He said more than 35 companies will start coal gasification activities in India within two months and that the government is encouraging firms that bring technology to close the domestic technology gap. The minister described the initiative as aimed at reducing import dependence and developing indigenous capacity. India has the fifth-largest coal reserve in the world, and..

Infrastructure Urban

25 Jun 2026

BHEL and Coal India Invest Rs 250 bn in Odisha Gasification

Bharat Heavy Electricals (BHEL) and Coal India (CIL) are jointly investing Rs 250 billion in a coal gasification project in Odisha, with the Prime Minister laying the foundation stone in Jharsuguda. Union Coal and Mines Minister G Kishan Reddy described the initiative as a transformative shift in coal utilisation that will open industrial avenues for the state. The project moves coal beyond conventional power generation to industrial feedstocks. Coal gasification will convert coal into synthesis gas, a versatile feedstock for chemicals, fertilisers and synthetic fuels, and the technology is ex..