Over 1.19 Cr Nationwide PNG Connections, Including BPL Households: MoS

As of 31 October 2023, the Centre had successfully installed over 1.19 crore Piped Natural Gas (PNG) connections nationwide, including for families living below the poverty line (BPL), stated the minister of state for petroleum and natural gas, Rameswar Teli to the Rajya Sabha.

“Petroleum and Natural Gas Regulatory Board (PNGRB) has authorised 300 Geographical Areas (GAs) covering about 98 per cent of the population, including BPL families and 88 per cent of total geographical area of the country spread over around 630 districts in 28 states/UTs for the development of CGD networks, with the MWP target of establishing approx. 12.50 crore PNG connections across the country by 2032. As of October 31, 2023, 1.19 crore PNG connections (including those provided to the BPL families) have been provided by the authorised CGD entities across the country,” as per the statement by the minister of state in the ministry of petroleum and natural gas, Rameswar Teli, in a written reply in Rajya Sabha today.

The statement further added, “To ensure the affordability of PNG, the government has approved the revised domestic natural gas pricing guidelivia vide gazette notification dated April 7, 2023, for gas produced from nomination fields of ONGC/OIL, New Exploration Licencing Policy (NELP) blocks and pre-NELP blocks, where the Production Sharing Contract (PSC) provides for the government's approval of prices. The price of such natural gas shall be 10 per cent of the monthly average of Indian crude basket and shall be notified on a monthly basis. For the gas produced by ONGC & OIL from their nomination blocks, the Administered Price Mechanism (APM) price shall be subject to a floor and a ceiling of USD 4.0/MMBTU & USD 6.5/MMBTU respectively.”

“The reforms have led to significant decrease in prices of Piped Natural Gas (PNG) for households and Compressed Natural Gas (CNG) for transport. Further, allocation of domestic gas to PNG (domestic) or CNG (transport) has been kept in the no-cut category. The government has increased the allocation for the CNG (T) and PNG (D) segments of the CGD sector from 8.32 MMSCMD in first half of 2013–14 to 21.143 MMSCMD for July-September 2023–24,” the minister noted.

Government steps include increasing domestic gas allocation to about 250 per cent of the allocation in 2013-14, diverting domestic gas from power and other non-priority sectors to meet the requirement for CNG (transport) and PNG (domestic) segments, declaring the CNG (T) and PNG (D) segments as the first priority for allocation of domestic natural gas, etc, the MoS stated. 

The government has also stated that in any situation where proportionate distribution of the gas offered under the bidding process is required, the contractor must prioritise bidders from the CNG (T) or PNG (D) sectors.