In a notable development, the demand for piped natural gas (PNG) is surging in the National Capital Region (NCR) of India, primarily due to growing concerns over the availability of liquefied petroleum gas (LPG). Indraprastha Gas Limited (IGL) has reported a significant increase in app registrations and new PNG connections as consumers seek alternatives amid the ongoing supply issues.

As the situation unfolds, IGL is actively scaling up its installation capacity to accommodate the rising demand for piped natural gas. The company’s efforts are aligned with the Indian government’s push to encourage a transition from LPG to PNG, which is seen as a more stable and accessible energy source.

The urgency of this shift has been underscored by the Centre’s directive to state governments to expedite approvals for piped gas projects. This move aims to facilitate quicker access to PNG infrastructure, which is crucial as the war in the Middle East has severely impacted India’s LPG supply, blocking nearly 60% of its imports.

In response to the increasing interest in PNG, companies like IGL and Mahanagar Gas Limited are also introducing incentives for customers who register for new connections before the end of March. This initiative is expected to further boost the adoption of piped natural gas in the region.

Despite these efforts, it is important to note that not all areas in India currently have access to PNG pipelines. The government is promoting the use of alternative cooking methods to address the ongoing LPG supply issues, indicating a broader strategy to ensure energy security.

Initial reactions from consumers have been positive, with many expressing relief at the availability of a reliable alternative to LPG. As the situation develops, stakeholders are closely monitoring the impact of these changes on the energy landscape in India.

Details remain unconfirmed regarding the exact timeline for the expansion of PNG infrastructure across all regions. However, the proactive measures being taken by IGL and the government signal a commitment to enhancing energy access for consumers.

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The government’s recent decision to prioritize gas supply for household PNG and CNG has raised concerns about potential curtailments for industrial users. Analysts estimate that a 20% reduction in gas supply to the industrial and commercial segments could lead to a 3% impact on volumes for both Mahanagar Gas Limited (MGL) and Indraprastha Gas Limited (IGL).

Gujarat Gas Limited, which supplies approximately 49% of its total volume to industrial and commercial consumers, is expected to face a more significant impact, with estimates suggesting a 10% reduction in volumes. In comparison, MGL and IGL have lower exposures, with 16% and 13% of their total gas distribution allocated to these segments, respectively.

In Noida, the minimum waiting period for booking a domestic LPG cylinder refill has increased to 25 days, up from 21 days, indicating a growing strain on gas supply. The region has around 10 lakh LPG connections, while Ghaziabad has 12 lakh. Of these, approximately 8,000 connections in Noida and around 15,000 in Ghaziabad are classified as commercial.

Despite the curtailment, the supply of PNG and CNG in western Uttar Pradesh has continued without interruption. The gas supply network in this region is connected to the Hazira-Vijaipur-Jagdishpur pipeline operated by GAIL (India) Limited, which plays a crucial role in maintaining supply stability.

Authorities have issued directives to ensure that domestic consumers do not face inconvenience in LPG supply, reflecting the government’s commitment to prioritize household needs amid the ongoing supply challenges. However, the focus on domestic consumers raises questions about the future availability of gas for industrial and commercial users.

As the situation develops, industry observers are closely monitoring the impacts on IGL and other companies, particularly as the curtailment could reshape the landscape for gas distribution in the region. Details remain unconfirmed regarding the long-term implications of these changes.

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