India’s gas consumption soars to 189 MMSCMD

India’s gas consumption has doubled, reaching 189 million metric standard cubic metres per day (MMSCMD), alongside a significant expansion in the country’s gas pipeline network. The network has grown from 14,000 km in 2018 to 24,000 km.

The city gas distribution (CGD) sector has seen impressive growth, with national gas consumption rising from 86 MMSCMD in 2007 to 189 MMSCMD now. This growth is linked to the expansion of the gas pipeline network and the increased use of regasified liquefied natural gas (RLNG) by industries and businesses. The number of CNG stations has also grown, from 280 in 2006 to 7,000 in 2024.

Despite these advancements, there are challenges, particularly in increasing the number of PNG connections for domestic use, which currently stands at 13.1 million. Singh acknowledged the difficulty in replacing LPG with PNG, citing consumer reluctance and connection costs.

Gajendra Singh from the Petroleum and Natural Gas Regulatory Board (PNGRB) spoke about the regulator’s aim to improve gas access. “We want to ensure gas is available to all, whether for piped natural gas (PNG), industrial and commercial uses, or compressed natural gas (CNG),” said Singh while speaking at the FICCI City Gas Distribution Summit 2024.

The PNGRB is working closely with state governments to increase gas availability across India. The number of areas covered by city gas distribution networks has risen from 34 to 307 since the board was established.

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To address these issues, the PNGRB is working with state authorities to tackle tax and infrastructure challenges. “We are discussing with state officials on how to reduce taxes,” Singh said, indicating efforts to improve the regulatory environment.

Singh also assured that there are no major supply constraints, with a balanced mix of 52 percent domestic gas and 48 percent RLNG available to meet demand.

The summit also featured Deepak Mahurkar from PwC India, who highlighted that the cost to customers is a major factor in gas adoption. He noted the government’s goals of increasing gas use while reducing carbon costs in the supply chain.

A new FICCI-PwC report, “Charting the Path Forward in CGD: Emerging Trends and Insights,” was released at the event, offering an in-depth look at the sector’s challenges and opportunities in adopting natural gas.