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About Natural Gas


  • Historically, India has relied on coal to power its electricity sector, liquid fuels as feed stock and oil for its transport sector. But for environmental reasons we need to focus on cleaner fuels.
  • The development of Natural Gas industry in the country started in 1960s with discovery of gas fields in Assam and Gujarat. After discovery of South Basin fields by ONGC in 1970s, Natural Gas assumed importance. The Exploration activities in India were earlier carried out only by the National Oil Companies (ONGC & OIL) under nomination regime. Later private companies where allowed to enter into exploration through JV with NOCs under Pre-NELP regime. Subsequently, 100% foreign participation in exploration was allowed in the current NELP regime. Later discoveries were made in Gujarat, KG basin, Cauvery basin, Tripura, Assam etc. In 2004, liquefied Natural Gas was imported from Qatar and LNG terminal was set up at Dahej of 5 MMTPA capacity.
  • Gas is one of the cleanest fuels with less carbon dioxide per joule delivered than either by coal or oil and far fewer pollutants than other hydrocarbon fuels.

Allocation and Supply of Natural Gas:

Natural gas available in India can broadly be classified into two categories, viz. (i) Domestic Natural Gas and (ii) Imported Re-gasified Liquefied Natural Gas (R-LNG). Supply and distribution of domestically produced gas is being carried out under the policy guidelines issued by the Government Policies from time to time. The import of RLNG falls under the list of Open General License Item and the marketers are free to import LNG and sell the RLNG to customers. A statement showing sector-wise supplies between April-Dec.’2016 of natural gas is given in table below.

(Figures are in MMSCMD) Sector

(Figures are in MMSCMD) Sector
Sector Domestic R-LNG Total
Fertilizers 22.04 20.51 42.55
Power 24.73 7.44 32.17
City gas distribution 11.55 8.12 19.67
Sponge Iron/ Petrochemical/Refineries/Internal Consumption/LPG Shrinkage/Miscellaneous 10.99 34.21 45.20
Total 69.31 70.28 139.59

Natural Gas Infrastructure in India:

Natural Gas Infrastructure consists of Gas Pipelines, R-LNG terminals and City Gas Distribution (CGD) networks. Details of same is as under:

(i) Natural Gas Pipelines:

At present, Country is having about 16470 Km long Natural Gas pipeline network in operation. The details of existing gas pipeline are under –

(Source – PPAC) (as on 30.09.2017)

Details of Existing Natural Gas Pipelines
Natural Gas Pipelines
Sl. No. Name of the Natural Gas Pipeline Name of Entity Capacity (MMSCMD) Length (KM)
1 Hazira-Vijaipur-Jagdishpur Pipeline/Gas rehabilitation and expansion project pipeline/Dahej-Vijaipur Pipeline & spur/ Vijaipur-Dadri Pipeline GAIL(India) Limited 53.00 4659.00
2 DVPL-GREP upgradation (DVPL-2 & VDPL) GAIL(India) Limited 54 1119
3 *Chhainsa-Jhajjar-Hissar Pipeline (CJPL) (Including spur lines) commisioned up to Sultanpur, Jhajjar-Hissar under hold (111 Km) GAIL(India) Limited 5.00 265.00
4 Dahej-Uran-Panvel Pipeline (DUPL/ DPPL) including spur lines GAIL(India) Limited 19.90 875.00
5 *Dadri- Bawana-Nangal Pipeline (DBPL), Dadri-Bawana: 106 Km, Bawana-Nangal: 501 KM, spur line of BNPL: 196 Km GAIL(India) Limited 31.00 834.80
6 Dabhol-Bengaluru Pipeline (Including spur) Phase -1- 997 km, Phase 2 - 114.6 km GAIL(India) Limited 16.00 1111.60
7 Kochi-Koottanad-Bengaluru-Mangalore (Phase-1) GAIL(India) Limited 6.00 48.00
8 Assam (Lakwa) GAIL(India) Limited 2.50 8.00
9 Tripura (Agartala) GAIL(India) Limited 2.3 61.00
10 Ahmedabad GAIL(India) Limited 2.91 133.00
11 Rajasthan (Focus Energy) GAIL(India) Limited 2.35 151.40
12 Bharuch, Vadodara (Undera) including RLNG+RIL GAIL(India) Limited 15.42 538.00
13 Mumbai GAIL(India) Limited 7.03 129.00
14 KG Basin (including RLNG+RIL) GAIL(India) Limited 16.00 881.00
15 Cauvery Basin GAIL(India) Limited 8.66 278.00
16 East- West Pipeline (RGTIL) Reliance 80.00 1480.00
17 Shahdol-Phulpur Pipeline (RGPL) Reliance 3.5/td> 304.00
18 GSPL network including spur lines GSPL 43 2613.20
19 Assam Regional Network AGCL,DNPL 3.24 816.80
20 Dadri-Panipat IOCL 9.50 140.41
21 Uran-Trombay ONGC 6.00 24.00
    Total: 387.31 16470.21

*CJPL and DBPL Pipelines are the extension of DVPL-2 / VDPL.

In order to develop gas grid infrastructure across the country, about 15000 Km long additional pipeline network have been identified. Out of the envisaged 15000 Km additional gas pipeline, PNGRB/GoI has already authorized entities to construct about 14500 Km long pipelines and same is under development.

(ii) Liquid Natural Gas (LNG) Re-gasification:

At present, 4 LNG terminals with total regasification capacity of 26.3 MMTPA (95 MMSCMD) are operational on the western coast of the country. The details of existing LNG terminals are as under:
Existing Operational R-LNG Terminals Capacity

Existing Operational R-LNG Terminals Capacity

Existing Operational R-LNG Terminals Capacity
Location Owner Re gas Capacity
Dahej PLL 15
Hazira Hazira LNG 5
Kochi PLL 5
Dhabol* GAIL 1.3
Total Existing Capacity (MMTPA) 20.3
Total (MMSCMD) 95

Besides the above terminals, development of additional regasification capacity of about 26 MMTPA is being planned on the eastern and western coasts of India by different entities. Development of these projects would depend on techno-commercial feasibility. This will make total regasification capacity from 26.3 MMTPA (existing) to 52.5 MMTPA.

(iii) City Gas Distribution (CGD) Infrastructure:

In year 2007, Government of India established Petroleum and Natural Gas Regulatory Board (PNGRB) under the PNGRB Act 2006. Under the Act, PNGRB grants the authorization to the entities for developing a City Gas Distribution (CGD) network (including PNG network) in a specified Geographical Area (GA) of the country. CGD sector has four distinct segments – Compressed Natural Gas (CNG) predominantly used as auto-fuel, and Piped Natural Gas (PNG) used in in domestic, commercial and Industrial segments.

 At present, there are 31 CGD entities which are developing and operating in 81 Geographical Areas in 20 states/UTs. The details of existing CGD infrastructure in the country, as on 1st October, 2017 , is as under:

- No. of PNG (Domestic) household connections :~ 3.87 Million
-No. of PNG (Commercial) connections : 25,180
- No. of PNG (Industrial) connections : 7,079
- No. of CNG Stations : 1,273

 In order to put thrust on development of CGD network for securing the un-interrupted supply of cooking and transport fuel to public at large, the Government has accorded the priority in domestic gas allocation to PNG(Domestic) and CNG(Transport) segments. Government has decided to meet 100% demand of CNG and PNG sector through supply of domestic gas. Further, GAIL has been authorized to supply 10% over and above the allocation to meet any fluctuation in demand. Domestic gas has also been diverted from non-priority sector to meet the additional demand for city gas distribution networks. At present, CGD sector is consuming approx. 11 Million Metric Standard Cubic Meter per Day (MMSCMD) of indigenous domestic Gas for CNG (Transport) and PNG (Domestic) sector. There is approx. 8.50 MMSCMD of imported Re-gasified Liquefied Natural Gas (RLNG) by Commercial and Industrial segment of CGD sector.

Further, under the provisions of PNGRB Act, 2006, PNGRB grants the authorizations to interested entities through a competitive bid selection process for laying a CGD network (PNG network) in a specified GA. PNGRB has been considering entire districts, which includes rural areas, as Geographical Areas (GAs) for covering in bidding rounds for grant of authorization to develop City or local natural gas distribution (CGD) networks. Accordingly, the Regulatory Board has envisaged a phased roll out plan for development of CGD networks in several parts of the country including the cities approved under SMART Cities program. CGD networks for identified cities are being considered in a phased manner depending on the natural gas pipeline connectivity/natural gas availability.