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?
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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
- 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
- 2PIB: Pradhan Mantri Urja Ganga Project: 2,655-km JHBDPL built by GAIL for eastern India
- 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
- 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
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