·The Hindu·15 marks·250–350 wordsPolityEconomyEnvironment

Discuss the role of the National Gas Grid in achieving the target of raising the share of natural gas in India's energy mix. What bottlenecks remain?

New · District CollectorCan you hold the district for 72 hours?Floods, a heatwave, an outbreak, a grievance queue. Take the decisions, see the consequences.Play →
In this answer
  1. Role of the National Gas Grid
  2. Bottlenecks that remain

India aims to raise the share of natural gas in its energy mix from about 6.3% to 15% by 2030. Expanding the National Gas Grid to about 33,500 km is central to this plan [1]. The grid creates the means to deliver gas, but demand, supply and pricing still lag behind the pipelines.

Role of the National Gas Grid

  • Links supply to markets: the trunk lines connect LNG terminals and gas fields to demand centres. The plan pairs grid expansion with new LNG terminals and City Gas Distribution (CGD) [1].
  • Balanced regional access: under Pradhan Mantri Urja Ganga, GAIL is building the 2,655-km Jagdishpur–Haldia–Bokaro–Dhamra line. This brings gas to eastern India, which was earlier left out of the network [2].
  • Industrial decarbonisation: NMDC will run its Nagarnar pellet plant in Chhattisgarh on natural gas instead of furnace oil. The gas will come through a 130-km extension of the Dhamra–Damanjodi line [4].
  • Anchor-customer model: large buyers such as NALCO and NMDC give a new pipeline steady demand. That makes it viable to add CGD customers later [4].
  • Wider use of gas: CGD networks supply piped gas (PNG) to homes and CNG for transport, which brings gas into homes and vehicles [1].

Bottlenecks that remain

  • Pipelines run below capacity: some pipelines operate at only 10–20% capacity because domestic gas is scarce [3]. Since pipeline costs are mostly fixed, low use raises the tariff each user pays.
  • Dependence on imports: domestic production is falling short, so the grid relies on imported LNG. This exposes industry to sudden price shocks.
  • Right-of-way delays: projects such as Haldia–Jagdishpur have been held up by compensation disputes, clearances from several agencies, and litigation [3].
  • Regulatory gaps: PNGRB has had vacancies, and safety oversight overlaps between agencies [3].
  • CGD shortfall: only 2,830 of 8,181 planned CNG stations are operational [3].

The National Gas Grid supplies the physical backbone for the 15% target, but pipelines alone will not create demand. India also needs to explore more blocks, sign long-term LNG contracts, clear right-of-way faster and fill PNGRB vacancies, as the Standing Committee recommended [3]. With these steps, gas can work as a bridge fuel that supports India's net-zero 2070 goal and SDG-7 (affordable and clean energy).

Sources

  1. 1PIB: The Government has set a target to raise the share of natural gas in energy mix to 15% in 2030 from about 6.3% now: 15% target, 6.3% baseline, ~33,500-km grid, CGD and LNG terminals
  2. 2PIB: Pradhan Mantri Urja Ganga Project: 2,655-km JHBDPL built by GAIL for eastern India
  3. 3PRS India: Standing Committee report summary on National Gas Grid including PNG and CNG (2022): 10–20% utilisation, right-of-way delays, PNGRB vacancies, CNG station shortfall, recommendations
  4. 4The Hindu: NMDC inks pact with GAIL arm for gas supply to pellet plant (18 Oct 2026): Nagarnar fuel switch, 130-km Damanjodi–Nagarnar extension, NALCO as existing customer
Practice
4 questions on this article
Check the answer for each question, or reveal all at once.
Practice MCQs →

More from this note

More on Polity