PNG Surge Fueled by Geopolitical Worries
India's energy sector is transforming, driven by global conflicts in West Asia and a stronger focus on energy security. In March 2026, Piped Natural Gas (PNG) adoption hit a record high, with distributors connecting over 3.5 lakh new customers. This surge happened as the government extended its PNG Drive 2.0 campaign by three months to June 2026, signaling a push to speed up the shift to natural gas. The original drive, launched by the Petroleum and Natural Gas Regulatory Board (PNGRB) in January 2026, aimed to move about 60 lakh LPG users to PNG. The situation is urgent because India relies heavily on imported LPG, with about 60% coming from West Asia, a region hit by conflicts. Nearly 90% of this LPG passes through the Strait of Hormuz, making LPG a bigger energy security worry than even LNG.
Long-Term Goal: Boosting Gas's Share
Expanding PNG infrastructure is a key part of India's long-term energy plan, not just a quick fix for the current crisis. The government aims to raise natural gas's share in the national energy mix from around 6.5% in 2024 to 15% by 2030. The city gas distribution (CGD) sector is crucial for this goal, with strong growth expected. PNG Drive 2.0 fits this vision by improving infrastructure in 37 areas and bringing services to 44 new districts. Efforts are also underway to upgrade CNG stations for more reliable supply. CGD companies are offering incentives, like discounts or free gas, to encourage LPG users to switch to PNG. Regulators are also helping speed up approvals and reduce the time from application to gas delivery, especially for places like schools and community kitchens.
Infrastructure Push Supports Growth
A strong infrastructure plan backs the PNG expansion. India plans for about 12.6 crore PNG connections and over 18,000 CNG stations by 2030-2034. The CGD market is expected to grow significantly, with PNG leading the way. PNG offers clear benefits over LPG cylinders, such as being safer, more reliable, cheaper, and cleaner. The Ministry of Petroleum and Natural Gas is urging states to adopt clear CGD policies and speed up permits, even offering extra commercial LPG for states that promote PNG. India is also looking to import more energy from Africa to reduce reliance on routes through the Strait of Hormuz. While LPG supply chains face global pressures, domestic LPG production has increased, and officials report normal deliveries without shortages, though commercial supplies are managed.
Roadblocks to Expansion Remain
Despite strong policy support, major hurdles slow down PNG network growth. Delays in getting permits from local authorities, rights-of-way, and high restoration fees continue to block timely development. While the government is pushing CGD companies to speed up pipeline work and approvals, slow government processes and resistance from housing societies have historically been issues. Reaching homes ('last-mile connectivity') also remains a challenge, with pipelines laid slower than needed. India has over 1.6 crore domestic PNG connections, but this is far behind the more than 33 crore LPG connections. PNG adoption is growing, but it has a long path ahead to replace LPG. Relying heavily on imported LPG and natural gas (LNG) also creates underlying weaknesses, especially with global supply chain problems and risks at critical transit points.
Outlook: Strong Push for Natural Gas
The PNG Drive 2.0, pushed by geopolitical events and long-term goals, marks a major turning point for India's energy sector. With continued government focus on raising natural gas consumption to 15% of the energy mix by 2030, along with infrastructure development and regulatory backing, the CGD sector is set for strong growth. While LPG supply issues have added urgency, the overall policy and expansion plans show a clear, long-term move towards natural gas. Despite ongoing challenges in implementation and infrastructure, the drive for PNG adoption is strong, fueled by energy security needs, environmental benefits, and cost advantages.