LPG to PNG, Pg21

Key Highlights:

• Government mandates shift from LPG to PNG where available to reduce LPG dependence.
• The Ministry of Petroleum and Natural Gas (MoPNG) issued order under Essential Commodities Act, 2026.
• LPG supply will cease after three months if PNG connection is not obtained despite availability.
• Around 60 lakh households have PNG infrastructure available but still use LPG.
• India imports 60% of its LPG, with 90% coming from West Asia.
• Domestic LPG production increased by 40% due to supply constraints.

Detailed Insights:

• The order aims to expand PNG networks and promote natural gas usage for cooking, transport, and industry.
• States are urged to expedite PNG expansion, with incentives like additional commercial LPG allocation.
• LPG distributors will notify users via text, phone, or recorded message about the three-month deadline.
• PNG connections are prioritized, with 100% supply to households and CNG for transport.
• LPG supply cuts to commercial and industrial consumers ensure uninterrupted household supplies.
• Refineries are directed to maximize LPG production, diverting streams from petrochemical manufacturing.
• India's natural gas import reliance is around 50%, with 55-60% coming through the Strait of Hormuz.
• Domestic LPG production now meets roughly 55% of demand, up from 40% pre-conflict.

Key Concepts Involved:

• Liquefied Petroleum Gas (LPG): A mix of propane and butane used as a fuel in heating appliances, cooking equipment, and vehicles.
• Piped Natural Gas (PNG): Natural gas supplied to households and businesses through a fixed pipeline network.
• City Gas Distribution (CGD): The network that distributes natural gas to domestic, commercial, and industrial consumers within a city or area.