From Cylinder to Pipeline — India’s Quiet Gas Shift Story
India is shifting from LPG to PNG to reduce supply risks, but long-term success depends on domestic gas availability and pricing stability.
Ramesh had always trusted his red LPG cylinder. One call, one delivery, cooking sorted. Simple.
But one day, supply delays hit. Prices rose. Uncertainty entered his kitchen.
That’s when a new option appeared — PNG.
Unlike LPG cylinders (mostly imported and vulnerable to global chokepoints), PNG flows through pipelines. It comes partly from India and partly from diversified global sources. That reduces risk concentration.
The government is quietly pushing this shift.
Why? Because LPG depends heavily on imports from a single region, while natural gas sourcing is more spread out.
But the story isn’t that simple.
PNG needs pipelines. Infrastructure is slow. Only ~5% of households have access today. Even where pipelines exist, connections lag.
Then comes the real twist pricing.
PNG works only if cheap domestic gas (APM gas) is available. But supply is expected to decline. If companies rely more on expensive LNG imports, prices rise, and PNG loses its advantage.
Still, policy reforms like unified tariffs are making PNG cheaper across regions, improving adoption potential.
So who benefits from this shift?
GAIL (India) Ltd