Why in News?

• The Petroleum and Natural Gas Regulatory Board (PNGRB) launched National PNG Drive 3.0 on October 1, 2026, to accelerate the adoption of Domestic Piped Natural Gas (D-PNG).
• The six-month campaign, running till March 31, 2027, seeks to expand household access to PNG, activate dormant connections and improve utilisation of existing City Gas Distribution (CGD) infrastructure.
• Its targets include 50 lakh new D-PNG connections, conversion of 40 lakh unbilled connections into active users, and 50 lakh additional registrations.

Why the Push for PNG?

• What is National PNG Drive 3.0?
• Building on PNG Drive 2.0
• Infrastructure Potential
• Key Challenges
• Policy Response and Way Forward
• Conclusion

Why the Push for PNG?

• The government views PNG as an important component of India's transition towards cleaner, reliable and affordable energy
• It can -
  • Facilitate a shift from LPG to piped natural gas;
  • Improve utilisation of existing gas infrastructure;
  • Reduce dependence on more carbon-intensive fuels;
  • Support India's broader energy-transition and Net-Zero objectives; and
  • Strengthen the role of natural gas in India's energy mix.
• The push has gained significance amid disruptions in global energy supplies, including the West Asia crisis, which highlighted the importance of energy security and diversification.
• Natural gas currently accounts for roughly 6% of India's primary energy mix, while the government has articulated a long-term objective of increasing its share to 15% by 2030.

What is National PNG Drive 3.0?

• The initiative goes beyond merely creating new connections. Its three principal objectives are -
  • 50 lakh new D-PNG connections by March 2027.
  • 40 lakh existing but unbilled connections converted into active, billed consumers.
  • 50 lakh additional registrations for D-PNG.
• As of June 30, 2026, India had around 1.74 crore PNG consumers, of whom approximately 1.15 crore were billed consumers.
• This indicates a significant gap between network connectivity and actual utilisation.
• The drive therefore places emphasis on semi-urban and rural areas, where newly established networks have not yet translated into corresponding consumer adoption.

Building on PNG Drive 2.0:

• PNG Drive 3.0 builds upon lessons from its predecessor. The PNG Drive 2.0 closure report highlighted the problem of converting registered connections into active users.
• PNG Drive 2.0 recorded substantial progress in connections and registrations, witnessing significant increase in daily additions of domestic PNG and billed consumers.
• The new campaign seeks to deepen this momentum by focusing not only on network creation but also on consumer conversion and utilisation.

Infrastructure Potential:

• India has already developed a substantial CGD infrastructure network. According to the government, around 6.88 lakh inch-km of pipeline has been laid, creating potential for approximately 1.3 crore additional connections.
• However, infrastructure alone does not guarantee adoption. The programme therefore stresses -
  • Coordinated material planning among CGD entities, regulators and suppliers;
  • Availability of gas meters, valves, GI pipes and MDPE pipes;
  • Expansion of pipelines into residential complexes and government colonies;
  • Improved consumer awareness; and
  • Reliable and affordable supply.

Key Challenges:

• Uneven consumer awareness: Awareness about PNG remains uneven across geographical areas. Consumers in mature CGD markets are generally more familiar with PNG than those in emerging markets.
• Affordability and upfront costs: High initial costs associated with obtaining connections can discourage households, particularly in emerging CGD areas.
• Network and last-mile connectivity: Expanding pipelines into low-density rural and semi-urban areas can involve high capital costs and uncertain demand.
• Dormant connections: A major challenge is converting registered but unbilled/inactive connections into regular consumers.
• Business viability: CGD companies need sufficient consumer density and sustained demand to recover infrastructure investments.

Policy Response and Way Forward:

• The government has introduced incentives to encourage CGD entities to expand D-PNG adoption.
  • From September 1, 2026, eligible CGD entities can receive an additional allocation of 200 Standard Cubic Metres (SCM) of lower-priced APM (Administered Price Mechanism) gas for each incremental billed domestic-PNG connection beyond the prescribed threshold.
  • The measure is intended to improve the commercial viability of new connections.
• The strategy should combine infrastructure expansion, consumer awareness, affordability measures, reliable supply and digital service delivery.
• The recently launched MyPNG Portal can further support consumer-centric service delivery by providing a unified digital interface for PNG-related services.

Conclusion:

• National PNG Drive 3.0 represents a shift from merely expanding energy infrastructure to ensuring its effective utilisation and consumer adoption.
• It links energy security, cleaner fuels, infrastructure development, regulatory governance and India's energy-transition goals.
• For India, expanding PNG can serve as a transitional pathway towards a lower-carbon energy system, provided that affordability, methane leakage, infrastructure costs and regional disparities are simultaneously addressed.