CNG wins the race, PNG falls behind—The inside story of India's city gas rollout
New Delhi: India's ambitious push for piped natural gas (PNG) connectivity in households has reached only halfway to its target, with just 1.50 crore domestic connections achieved against a pro-rata target of 3 crore, according to the latest City Gas Distribution (CGD) performance data released by the
Petroleum and Natural Gas Regulatory Board
(PNGRB) for March 2025.
The report highlights that the shortfall is particularly stark in the most recent bidding rounds. The 9th round, launched in 2018, achieved only 26% of its pro-rata PNG domestic target. The 10th round (2019) reached 21%, while the 11th and 11A rounds (both 2022) stood at just 1% and 0%, respectively. The 12th round, conducted in 2024, also reported zero achievement on domestic
PNG connections
.
Out of the 312 geographical areas (GAs) authorised by PNGRB till date, 93 GAs continue to report zero domestic PNG connections—indicating major last-mile delivery gaps in several regions. These rounds collectively represent a significant portion of the national PNG household target, making the shortfall critical from a coverage and energy access standpoint.
In contrast, the rollout of
Compressed Natural Gas
(CNG) infrastructure has significantly outpaced targets. Against a pro-rata target of 4,877
CNG stations
, 8,067 stations have already been commissioned, reflecting 165% achievement as of March 2025. In the month of March alone, 347 CNG stations were added against a target of 213.
The number of PNG customers in the industrial and commercial segments stood at 20,461 and 45,373 respectively. While these numbers are rising, the PNGRB report noted that they remain modest when compared to the sector's potential—particularly in the context of industrial decarbonisation and commercial energy efficiency targets.
On the consumption side, data from March 2025 shows that CNG accounted for the highest share of natural gas volumes at 59%. Industrial PNG usage followed with 31%, while domestic PNG stood at just 8%, and commercial PNG at 2%. The underperformance in domestic connections is also reflected in volume shares, suggesting the need for targeted interventions.
In terms of total gas sales, India clocked 15,462 million metric standard cubic meters (MMSCM) in FY25. Of this, 10,404 MMSCM came from CNG, followed by 6,174 MMSCM from domestic PNG, 4,748 MMSCM from industrial PNG, and 310 MMSCM from commercial PNG.
Monthly gas sales for March stood at 813 MMSCM, of which CNG accounted for 556 MMSCM, PNG (domestic) for 342 MMSCM, PNG (industrial) for 413 MMSCM, and PNG (commercial) for 23 MMSCM. The share of APM (administered price mechanism) gas in total sales during March was 45%.
The CGD pipeline network has expanded to 5,46,867 inch-kilometres. In terms of transmission infrastructure, common carrier pipelines span 32,661 km, tie-in connectivity accounts for 792 km, and dedicated pipelines for 780 km. In the petroleum and petroleum product pipeline (PPPL) segment, a total of 13,652.5 km has been authorised, with 9,301 km operational and 4,263.5 km under construction.
The report also outlines performance by category of CGD entities. Public sector undertakings (PSUs) account for 27% of domestic PNG connections and 36% of CNG stations. Joint ventures between PSUs have the highest billed PNG domestic share at 60%, while private players account for 14%.
PNGRB's data captures the state of play in India's gas infrastructure rollout as of March 2025 and serves as a key reference point for both industry and policymakers tracking progress towards a wider, cleaner, and more connected natural gas economy.
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