06 Mar 2024 | 07:46 UTC

India launches 201 CNG stations, first SSLNG unit amid gas-based economy push

Highlights

New CNG stations across 17 states by 15 CGD companies

GAIL sets up India's first small-scale LNG unit at Vijaipur LPG plant

Investment avenues of about $67 bil to open on gas push

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India's Union Minister of Petroleum and Natural Gas & Housing and Urban Affairs, Hardeep Singh Puri, has inaugurated 201 compressed natural gas stations across 17 states as well as launched the country's first small-scale LNG unit set up by GAIL at Vijaipur in Madhya Pradesh, reflecting India's accelerated move to a gas-based economy, GAIL said in a statement March 5.

"These stations will promote the usage of CNG as a greener alternative to conventional fuels and make it available in newer areas," the Indian state-owned gas company said.

The 201 CNG stations have been set up by 15 City Gas Distribution, or CGD, entities, of which 53 stations belong to GAIL Gas Limited, 50 to Indraprastha Gas Limited, 43 to GAIL and 20 to Mahanagar Gas Limited, GAIL said. In addition, four belong to Avantika Gas Limited, two to Bengal Gas Company Limited, three to Central UP Gas Limited, one to Goa Natural Gas Pvt. Limited, three to Green Gas Limited, one to Haridwar Natural Gas Limited, two to Purba Bharati Gas Limited, one to Rajasthan State Gas Pvt. Limited, one to Tripura Natural Gas Company Limited and one to Vadodara Gas Limited.

"After the completion of ongoing CGD development in geographical areas, or GAs, awarded under the 12th CGD bidding round of Petroleum and Natural Gas Regulatory Board, almost entire India's population and geographical area will have access to natural gas," GAIL said.

The PNGRB invited bids for the development of CGD networks in seven GAs under round 12 of CGD bidding, which started Oct. 13, 2023, and closed Jan. 11.

The total number of CNG stations across the country has surged to over 6,200 while the number of domestic Piped Natural Gas, or PNG, connections were at around 12.1 million, GAIL said.

GAIL group companies account for about 40% CNG stations and around 64% PNG connections in the country.

GAIL has also set up India's first small-scale LNG, or SSLNG, unit at its Vijaipur LPG plant.

"This SSLNG technology has the potential to play a crucial role in connecting the isolated sources and consumers which are yet to be connected to the Natural Gas Pipeline Network," the company said.

In India, natural gas demand is expected to be robust, rising 6%-7% year on year as the South Asian country advances its target of taking the share of natural gas in the country's energy mix to 15% by 2030, industry sources told S&P Global Commodity Insights separately.

"Development of the National Gas Grid and a widespread CGD network for connecting consumption centers with supply points will play a crucial role in India's journey towards being a gas-based economy in which the share of natural gas in our energy mix will increase from 6% to 15% by 2030," Puri said in a post on X, formerly Twitter, on March 5.

This transformation will open investment avenues of about $67 billion, Puri shared.

India is committed to improving the policy and regulatory environment to develop and provide cleaner and sustainable fuel, Puri said, adding that around 24,623 km of pipeline out of the over 33,753 km of natural gas trunk pipelines authorized are already operational in the country.