**Executive Summary**
This document is a response to Lok Sabha Unstarred Question No. 1857 regarding the expansion of natural gas infrastructure, to be answered on December 11, 2025. It outlines the government's efforts, through the Petroleum and Natural Gas Regulatory Board (PNGRB), to expand the national gas pipeline grid (NGPL), enhance liquidity and transparency in the Indian Gas Exchange (IGX), and secure long-term LNG contracts. The report identifies the roles of the PNGRB and various government bodies in accelerating the project.
**Key Points / Main Content**
* **Authority and Expansion:**
* The Petroleum and Natural Gas Regulatory Board (PNGRB) is authorized to lay, build, operate, and expand Natural Gas Pipelines (NGPL).
* PNGRB has authorized approximately 34,233 km of NGPL network.
* **Infrastructure Development:**
* Government reviews and coordinates with State Governments and executing agencies to resolve challenges in constructing the National Gas Grid.
* Spur-line networks are operational in Dewas (10km), Shajapur (57km), Bulandshahr (89km) and Palghar (127km) districts.
* **Liquidity and Transparency in Indian Gas Exchange (IGX):**
* IGX is authorized to operate six Regional Gas Hubs and additional delivery points.
* Introduction of ceiling-price domestic gas and small-scale LNG (ssLNG) segments on the exchange.
* Approval of Long Duration Contracts (3 and 6 months) and Balance-of-Month contracts.
* The exchange facilitates trading smaller lot size of 50 MMBtu/day (1250 SCMD).
* **LNG Procurement:**
* Liquefied Natural Gas (LNG) is placed under the Open General License (OGL) category.
* Companies in private and public sectors can secure long-term LNG contracts.
* **Domestic Gas Marketing:**
* Domestic gas producers can sell up to 500 mmscm or 10% of their annual production (whichever is higher) through gas exchanges authorized by PNGRB.
**Impact Analysis**
**Petroleum and Natural Gas Regulatory Board (PNGRB)**
* **Impact:** Responsible for granting authorization to lay, build, operate and expand NGPL; must oversee infrastructure development and ensure compliance.
* **Action Required:** Continue authorizing NGPL network expansion, take measures to enhance liquidity and transparency in IGX, and monitor compliance by domestic gas producers.
**State Governments and Executing Agencies**
* **Impact:** Play a critical role in facilitating the construction of the National Gas Grid by resolving challenges related to land acquisition, permissions, and approvals.
* **Action Required:** Coordinate with the central government to resolve challenges and expedite the project.
**Domestic Gas Producers**
* **Impact:** Gain freedom to market and sell domestic gas.
* **Action Required:** Sell gas through gas exchanges authorized by PNGRB in accordance with regulations.
**Companies in Private and Public Sectors**
* **Impact:** Can secure long-term LNG contracts due to LNG being under OGL category.
* **Action Required:** Secure LNG contracts as per their requirements on mutually agreed commercial terms with suppliers.
**Smaller Market Players**
* **Impact:** Improved access to the gas market through smaller lot sizes on the exchange.
* **Action Required:** Take advantage of facilitated trading with smaller lot sizes.
Key Entities Referenced
Petroleum and Natural Gas Regulatory Board (PNGRB): The authority to grant authorization to entities to lay, build, operate and expand Natural Gas Pipelines (NGPL).
National Gas Grid: A national infrastructure project aimed at interconnecting gas pipelines across the country.
Indian Gas Exchange (IGX): A platform for trading natural gas, used to enhance liquidity and transparency in the market.
Hazira Vijaipur Jagdishpur (HVJ) pipeline system: A major natural gas pipeline network.
Madhya Pradesh: One of the states where the Government plans to accelerate completion and inter-connectivity of the national gas pipeline grid.
LOK SABHA
UNSTARRED QUESTION No. 1857
TO BE ANSWERED ON 11th December, 2025
EXPANSION OF NATURAL GAS INFRASTRUCTURE
†1857. SHRI TRIVENDRA SINGH RAWAT:
SHRI CHAVDA VINOD LAKHAMSHI:
SHRI KRISHNA PRASAD TENNETI:
SHRI YOGENDER CHANDOLIA:
SHRI MANOJ TIWARI:
SHRI MAHENDRA SINGH SOLANKY:
SHRI AVIMANYU SETHI:
SHRI VISHWESHWAR HEGDE KAGERI:
DR. BHOLA SINGH:
DR. HEMANT VISHNU SAVARA:
SHRI RAJKUMAR CHAHAR:
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ी
Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:
(a) the manner in which the Government plans to accelerate completion and inter-connectivity of
the national gas pipeline grid, especially in Dewas and Shajapur districts of Madhya Pradesh;
(b) whether the Government has identified any new routes or spur-lines to improve gas supply in
underserved districts including Bulandshahr in Uttar Pradesh and if so, the details thereof;
(c) the measures being implemented to improve liquidity and transparency on the Indian Gas
Exchange and the manner in which the Government is encouraging participation from smaller
market players;
(d) the strategy being adopted by the Government for securing long-term international LNG
contracts to meet the estimated fifteen percent gas share demand amid global market volatility;
(e) whether any development has been done in the inter-connectivity of the national gas pipeline
grid in Palghar District in Maharashtra and if so, the details thereof; and
(f) if not, the reasons therefor?
ANSWER
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ालय म(cid:336) रा(cid:475)मं(cid:361)ी
((cid:373)ी सुरेश गोपी)
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
(SHRI SURESH GOPI)
(a) to (f) Petroleum and Natural Gas Regulatory Board (PNGRB) is the authority to grant
authorization to entities to lay, build, operate and expand Natural Gas Pipelines (NGPL). With
the aim to increase the availability of natural gas across the Country (including the underserved
areas), PNGRB has authorized approximately 34,233 km of NGPL network which includecommon carrier, spur line, tie-in connectivity and dedicated pipeline across the country to
various entities.
In order to accelerate the construction of National Gas Grid, Government continually
reviews and coordinates with the concerned State Governments and executing agencies to
resolve the challenges such as securing Right of User (RoU) in land, obtaining forest and
environmental permissions, obtaining approvals for crossings such as Rivers, Canals, Railways,
National Highways which include multiple authorities, etc.
In Dewas District of Madhya Pradesh, about 10 km of spur-line network of Hazira
Vijaipur Jagdishpur (HVJ) pipeline system (part of national gas grid) is operational, providing
connectivity in and around Dewas, Pithampur and Indore. In Shajapur District, approximately 57
km of natural gas pipeline forming part of the HVJ Pipeline, Dahej–Vijaipur Pipeline-I and
Dahej–Vijaipur Pipeline-II (part of national gas grid) are operational.
In Bulandshahr District of Uttar Pradesh, about 89 km of spur-line network of HVJ
pipeline system (part of national gas grid) is operational, providing connectivity in and around
Bulandshahr.
In Palghar District of Maharashtra, about 127 km of spur-line network of Dahej-Uran
Pipeline Network and Dabhol-Panvel Pipeline Network (DUPL-DPPL) (part of national gas
grid) is operational.
Government have permitted the domestic gas producers who have been granted pricing and
marketing freedom to sell domestic gas upto 500 mmscm or 10% of annual production from their
contract area whichever is higher, per year through gas exchanges authorized by PNGRB.
PNGRB has informed that it has taken various measures to enhance liquidity, transparency and
ease of trading on Indian Gas Exchange (IGX) which, inter-alia, includes authorizing IGX to
operate six Regional Gas Hubs and additional delivery points to attract more participants;
introduction of ceiling-price domestic gas and small-scale LNG (ssLNG) segments on the
exchange; and approval of Long Duration Contracts of 3 and 6 months as well as Balance-of-
Month contracts to improve market depth and price discovery. Further, to facilitate market
access to smaller market players, the exchange facilitates trading smaller lot size of 50
MMBtu/day (1250 SCMD).
Government have placed Liquefied Natural Gas (LNG) under the Open General License (OGL)
category, thereby allowing companies in private as well as public sector to secure long-term
LNG contracts as per their requirements on mutually agreed commercial terms with suppliers.
****