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Government Pushes PNG Adoption as West Asia Crisis Strains LPG Supply Chain​

CGD Companies Asked to Prioritise Commercial PNG Connections​

New Delhi, March 21: As the crisis in West Asia continues to disrupt global supply chains, the government has directed city gas distribution companies to prioritise piped natural gas connections for commercial establishments, including hotels, restaurants, and canteens.

City gas distributors such as Indraprastha Gas Ltd, Mahanagar Gas Ltd, GAIL Gas, and BPCL are currently offering incentives to accelerate the shift. The Petroleum and Natural Gas Regulatory Board has instructed these companies to reduce the time between application submission and the start of gas supply, while also undertaking large-scale awareness campaigns.

States Urged to Fast-Track CGD Expansion Approvals​

The government has called on states and Union Territories to expedite approvals for expanding city gas distribution networks. This step is aimed at strengthening infrastructure and enabling faster rollout of PNG connections across both domestic and commercial segments.

In addition, the Centre has offered an extra 10 percent allocation of commercial LPG to states and Union Territories that support a long-term transition from LPG to PNG.

Over 13,700 New PNG Connections Issued​

Recent data from the Ministry of Petroleum and Natural Gas shows a steady push toward PNG adoption. More than 13,700 new PNG connections have been issued in the past few days, while over 7,300 consumers have shifted from LPG to PNG. This transition is helping ease pressure on LPG demand amid supply concerns.

LPG Supply Stable Despite Global Uncertainty​

While geopolitical tensions have raised concerns over LPG availability, the government has stated that no shortages have been reported at distribution centres. Domestic LPG deliveries are continuing without disruption.

Panic bookings have also declined sharply, falling from 89 lakh on March 13 to around 55 lakh on March 20, indicating stabilising consumer behaviour.

Priority Allocation for Essential Sectors​

Around 18 states and Union Territories have issued orders for non-domestic LPG allocation, with supply being maintained across the country. Essential sectors such as educational institutions and hospitals are being prioritised, receiving nearly 50 percent of the commercial LPG allocation.

In the past week, approximately 11,360 metric tonnes of commercial LPG has been lifted, according to official data. Priority segments continue to receive uninterrupted supply, including full allocation for domestic PNG and CNG transport.
 

Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.

The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.

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Editorial Note

This news article was written and created by Himanshu, and published on IST.
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