The operational length of natural gas pipelines in India has increased from 15,340 kilometers in 2014 to 24,945 kilometers as of September 10, 2024, reflecting a 62.6% growth, according to a press release from the Ministry of Petroleum and Natural Gas. Additionally, 10,805 kilometers of pipeline are currently under construction.
Once completed, these pipelines, authorized by the Petroleum and Natural Gas Regulatory Board (PNGRB), will finalize the national gas grid, connecting key demand and supply centers across the country. The grid integrates networks owned by companies including Indian Oil Corporation, GAIL (India) Limited, and Gujarat State Petronet Limited, among others.
As part of tariff reforms, PNGRB introduced a unified tariff structure effective June 1, 2024, with a rate of ₹80.97 per MMBTU. The structure includes three tariff zones: up to 300 kilometers, between 300-1200 kilometers, and beyond 1200 kilometers from the gas source. This measure aims to simplify tariffs and promote gas market development.
In the City Gas Distribution (CGD) sector, 307 geographical areas have been authorized for infrastructure development, potentially covering 100% of India’s area and population. As of September 30, 2024, there were 1.36 crore PNG (domestic) connections and 7,259 CNG stations operational nationwide. The government has introduced guidelines to ensure stable gas supplies for CGD consumers, including a 105% allocation of the previous quarter’s consumption for the domestic PNG segment, with the remainder allocated to the CNG transport segment.
Exploration and production efforts have also expanded. Under the Open Acreage Licensing Policy (OALP), 144 blocks covering over 242,056 square kilometers have been allocated across eight bidding rounds, with a committed investment of $3.137 billion. These efforts have resulted in 13 hydrocarbon discoveries, including one operational gas field in Gujarat producing 0.44 MMSCMD.
In the ongoing OALP Round IX, bids for an area of 136,596 square kilometers across eight sedimentary basins are being evaluated, with further plans to offer 191,986 square kilometers for international bidding in Round X.
For the financial year 2023-24, 741 wells, comprising 132 exploratory and 609 development wells, were drilled, underscoring the ministry’s focus on boosting domestic hydrocarbon production.