Lok Sabha Question No. 6369 (UNSTARRED), answered on 2026-04-02
Subject: Promotion and Expansion of Natural Gas Sector
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Anup Sanjay Dhotre

## LOK SABHA

## UNSTARRED QUESTION No. 6369

TO BE ANSWERED ON 2 nd  April, 2026

## PROMOTION AND EXPANSION OF NATURAL GAS SECTOR

## 6369.   SHRI ANUP SANJAY DHOTRE:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a)  the  steps  being  taken  by  the  Government  to  increase  availability  of  natural  gas  and  to  expand  pipeline infrastructure in the country;
- (b) the measures adopted by the Ministry to promote City Gas Distribution networks;
- (c) the policies in place to encourage the use of Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG);
- (d) the initiatives taken by the Government to support gas-based power generation and industrial use of natural gas; and
- (e) whether any incentives are being provided to expand the use of natural gas in transportation and households and if so, the details thereof?

## ANSWER

पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũालय मŐ राǛमंũी ( ŵी सुरे श गोपी )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SURESH GOPI)

(a)  to  (e)  Natural  gas  is  supplied  through  a  network  of  natural  gas  pipelines  and  City  Gas  Distribution (CGD) networks, which are developed by entities authorized by the Petroleum and Natural Gas Regulatory Board (PNGRB). As on December 2025, PNGRB has authorized approximately 34,273 km of Natural Gas Pipeline  (NGPL)  network  which  includes  common  carrier,  spur  line,  tie-in  connectivity  and  dedicated pipeline across the country to create a National Gas Grid to be completed within periods as specified in the PNGRB authorization, out of which 27,427 km are operational. The expansion of National Gas Grid is being undertaken to ensure connectivity to demand centres across the country and enhance availability of natural gas.

Providing  Piped  Natural  Gas  (PNG)  connections,  establishment  of  Compressed  Natural  Gas  (CNG) stations  and  laying  of  pipeline  infrastructure  is  part  of  development  of  CGD  Networks  and  the  same  is carried  out  by  the  entities  authorized  by  PNGRB  as  per  their  Minimum  Work  Programme  (MWP)  and techno-commercial feasibility.

After completion of 12/12A CGD bidding round, PNGRB has authorized entities for the development of CGD network in 307 Geographical Areas (GAs), covering the entire mainland area for the development of CGD network across the country. The expansion and roll out of CGD network is a continuous process. As on 31.01.2026, the authorized entities have provided 1.62 crore PNG Domestic (PNG (D)) connections, established 8,616 CNG Stations and laid 6.296 lakh inch-km pipeline.

To promote the CNG (Transport) and PNG (Domestic) segment of CGD Sector, Government have taken various steps which, inter-alia ,  includes  allocating  domestic gas on priority  basis to CNG (T)/ PNG(D); diverting  domestic  gas  from  non-priority  sectors  to  meet  the  requirement  for  CNG  (T)/PNG(D)  sector, expansion  of  CGD  network,  grant  of  Public  Utility  Status  to  CGD  projects,  notification  for  supply  of domestic gas through available mode (including cascade mode) for CNG(T)/ PNG(D) purpose, provision for  priority  supply  to  CNG(T)/PNG(D)  from  Deepwater,  Ultra  Deepwater  and  High  Pressure-High Temperature discoveries in case of proportionate distribution etc.

Government  have  also  taken  measures  to  enhance  availability  and  accessibility  of  natural  gas  across sectors,  including  CGD  (CNG/PNG),  gas-based  power  generation  and  industrial  use,  which, inter-alia , include expansion of the National Gas Grid to connect domestic sources and LNG terminals with demand centres; development of LNG import infrastructure; implementation of a unified pipeline tariff; allowing producers  with  marketing and  pricing  freedom  to  sell  a  portion  of  domestic  gas  through  gas  exchanges authorised  by  PNGRB;  and  placing  LNG  under  Open  General  Licence  (OGL)  to  enable  imports  on mutually agreed commercial terms.

The  Unified  Tariff  has  been  rationalised  by  reducing  tariff  zones  from  three  to  two  and  notified transportation tariffs of Rs. 54/MMBTU for Zone-1 (up to 300 km) and Rs. 102.86/MMBTU for Zone-2 (beyond 300 km), effective from 01.01.2026. Zone-1 tariff has been extended nationwide for CNG (T) and PNG (D), resulting in nearly 50% reduction in transportation charges for consumers beyond 300 km. This reform further improves affordability and equity in access to natural gas.

Recently, a comprehensive  control order dated 24.03.2026 has been issued under the Essential Commodities Act, 1955 to facilitate  time-bound  expansion  of  pipeline  infrastructure  across  the  country, especially  CGD.  The  Order  provides  a  uniform  framework  for  grant  of  right  of  way  (RoW)  and permissions by mandating strict timelines, enabling deemed approvals in case of delays, and prohibiting imposition of unauthorised charges by public authorities. It also addresses access issues in residential and private areas by ensuring non-discriminatory and time-bound  permissions, thereby  removing  key bottlenecks in pipeline laying.

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