India's Expanding Natural Gas Network: Transforming Energy Landscape

India's natural gas pipeline network has expanded significantly from 15,340 km in 2014 to 24,945 km in 2024, marking a 62.6% increase. With ongoing projects and regulatory reforms, the national gas grid aims to unify tariffs and bolster economic and social advancements across the country.

India has witnessed a substantial growth in its operational natural gas pipeline, stretching from 15,340 kilometers in 2014 to an impressive 24,945 kilometers by September 2024, marking a remarkable 62.6-percent expansion. According to the Ministry of Petroleum & Natural Gas, an additional 10,805 kilometers of pipeline infrastructure is currently under development to further bolster the nation's energy framework.

This expansion, orchestrated by the Petroleum and Natural Gas Regulatory Board (PNGRB), aims to complete the national gas grid, enhancing connectivity between demand and supply hubs throughout India. This initiative will not only facilitate the widespread availability of natural gas but also promote uniform economic and social progression across regions.

Significant regulatory changes have been introduced as of January 7, with PNGRB amending the natural gas pipeline tariff regulations to implement a Unified Tariff system under the banner of 'One Nation, One Grid, One Tariff.' Effective June 1, 2024, a levelized unified tariff of Rs 80.97 per MMBTU has been established, delineating three distinct tariff zones based on proximity to the gas source.

The integrated gas network encompasses pipelines operated by major industry stakeholders such as the Indian Oil Corporation Limited, Oil and Natural Gas Corporation Limited, and GAIL (India) Limited, among others. These reforms, particularly beneficial for remote regions, aim to amplify gas market growth and align with government ambitions to boost gas utilization nationwide.

The PNGRB has also authorized 307 geographical areas for City Gas Distribution (CGD) infrastructure development, targeting almost complete national and population coverage. As of September 2024, the country boasted 1.36 crore PNG (Domestic) connections and 7,259 CNG stations. To manage growing CGD demand and shield consumers from price fluctuations, new government-released guidelines have increased gas allocation to the PNG domestic sector while ensuring proportional allocation to the CNG transport sector.

In the domain of exploration and production, the ministry reported the allocation of 144 blocks across over 242,056 square kilometers to various companies during eight OALP bid rounds, promising an investment of $3.137 billion USD. Thirteen hydrocarbon discoveries have emerged from these blocks, with one already contributing gas production in Gujarat. The upcoming rounds of bidding continue to attract substantial interest, promising further advancements in India's energy landscape.

(With inputs from agencies.)