Moving India's share of natural gas in the primary energy mix from ~6% to 15% needs more than pipeline length. Examine the bottlenecks and the role of the regulator.
In this answer
Natural gas makes up only about 6% of India's primary energy mix, against a target of 15% by 2030 [1][2]. City Gas Distribution (CGD) is now authorised for nearly the whole country, and about 35,000 km of pipelines are authorised [1]. Yet gas use still lags, so the real limits are supply, affordability and actual use rather than network length.
Bottlenecks
- Weak domestic supply: domestic gas output grew only 0.98% a year from 2014 to 2023, while net imports grew 6.13% a year [3]. Relying on LNG exposes consumers to shocks like the Hormuz disruption.
- Connection is not consumption: in PNG Drive 2.0, 15.31 lakh registrations turned into only 12.10 lakh connections [1]. Low LPG refill rates under Ujjwala show that access does not guarantee use [3].
- Execution gaps: CAG found that GAIL Gas missed its CGD milestones because of poor planning, poor contract management and delayed permissions [4].
- Poor viability: CGD networks take 10–15 years to recover their cost, which discourages investment in low-demand areas [1].
- Cost over distance: additive pipeline tariffs made gas costlier for consumers in far-flung areas [5].
Role of the Regulator (PNGRB)
- Statutory mandate: under the PNGRB Act, 2006, it regulates midstream and downstream activities such as transport, distribution and marketing, but not production [6]. It can widen reach but cannot raise domestic supply.
- Tariff reform: it introduced a Unified Tariff of ₹80.97/MMBTU from 1 July 2024 with three distance zones, under "One Nation, One Grid, One Tariff" [5].
- Enforcing commitments: it encashed GAIL Gas's Performance Bank Guarantee over unmet targets [4]. Strict enforcement of the Minimum Work Programme (MWP) has to become routine.
- New success metric: it is moving from kilometres laid to gas actually consumed. NHIMS puts infrastructure data on one digital platform [1].
- Consumer outreach: MyPNG Portal and PNG Drive 3.0 [1].
- Independence: the Minister stressed that it must stay at arm's length from administrative and commercial interests [1].
Reaching 15% therefore needs supply, affordability and real usage to grow together. PNGRB should publish area-wise consumption data through NHIMS and enforce MWPs strictly. MoPNG should raise domestic output, and States should speed up clearances. An independent, consumption-focused regulator can make gas a true transition fuel, advancing energy security and SDG 7 (affordable and clean energy).
Sources
- 1Union Minister Shri Hardeep Singh Puri commends energy sector resilience… (PIB, 1 Oct 2026)~6% gas share, 35,000 km pipelines, CGD coverage, PNG Drive 2.0/3.0 data, 10–15 year cost recovery, consumption metric, NHIMS, MyPNG, regulatory independence
- 2Share of Natural Gas in the primary energy mix envisaged to increase to 15% by 2030 (PIB)15% by 2030 target
- 3Demand for Grants 2026-27 Analysis: Petroleum and Natural Gas (PRS)0.98% domestic gas CAGR vs 6.13% net imports; low Ujjwala refill rates
- 4CAG Report No. 9 of 2017 — Compliance audit observations, GAIL Gas LimitedGAIL Gas missed CGD milestones; PNGRB encashed Performance Bank Guarantee
- 5Year End Review 2024 – Ministry of Petroleum and Natural Gas (PIB)Unified Tariff ₹80.97/MMBTU from 1 Jul 2024, three zones, benefit to far-flung consumers
- 6Petroleum and Natural Gas Regulatory Board Act, 2006 (India Code)PNGRB's midstream/downstream mandate, production excluded