Executive Summary:
This document addresses Lok Sabha Unstarred Question No. 4628 regarding natural gas usage in India. It outlines the government's strategies to increase the share of natural gas in India's energy mix to 15% by 2030. It also details steps taken to encourage competitive gas prices and improve domestic gas production. The document references data up to Financial Year 2023-24 and mentions pricing guidelines updated on April 7, 2023.
Key Points / Main Content:
Natural Gas in India's Energy Mix:
* The share of natural gas in India's energy mix was 7.0% (provisional) in FY 2023-24.
* The government aims to increase this share to 15% by 2030.
Government Initiatives:
* Expansion of the National Gas Grid Pipeline and City Gas Distribution (CGD) network.
* Setting up Liquefied Natural Gas (LNG) Terminals.
* Prioritizing allocation of domestic gas to Compressed Natural Gas (Transport & Domestic) (CNG/TPNGD).
* Allowing marketing and pricing freedom for gas produced from challenging areas, with a ceiling price.
* Promoting Compressed Bio Gas (CBG) through the SATAT initiative.
* Hydrocarbon Exploration and Licensing Policy (HELP) implementation for exploration acreages, shifting to a Revenue Sharing mechanism.
* Policy reforms effective February 28, 2019, including relaxed processes, revenue share removal (except windfall gains), royalty holidays, and fiscal incentives for early monetization.
Challenges and Solutions:
* Natural gas consumption is affected by price compared to alternative fuels and transportation costs.
* Gas prices depend on domestic production and international availability.
* Increasing domestic gas production reduces the need for imports.
Energy Security and Environmental Sustainability:
* Increased natural gas usage enhances environmental sustainability due to lower emissions compared to other fossil fuels.
* It improves energy security by diversifying the energy mix, reducing reliance on imported oil and coal, and decreasing vulnerability to international market volatility.
Smart Meters and Digital Monitoring Systems:
* The government does not maintain data on the number of smart meters and digital monitoring systems installed for national gas distribution.
* Authorized entities implement these systems based on techno-commercial feasibility, following PNGRB regulations.
* Major gas pipeline operators use advanced measurement systems (Ultrasonic, Turbine, and Rotary Positive Displacement Meters) integrated with digital Flow Computers, Gas Chromatographs, and SCADA systems for real-time monitoring and efficient management.
Competitive Gas Pricing:
* Domestic gas is allocated to the PNGD segment of CGD on a priority basis.
* Prices are determined according to revised domestic natural gas pricing guidelines (Gazette Notification, April 7, 2023) for gas from nomination fields of ONGC/OIL, NELP blocks, and pre-NELP blocks.
* The price of such natural gas is determined as 10% of the monthly average of the Indian Crude Basket, with a floor of 4.0 MMBTU and a ceiling of 6.5 MMBTU for ONGC and OIL nomination blocks.
* The ceiling will be maintained for FY 2023-24 and 2024-25, then increased by 0.25 MMBTU each year.
* A premium of 20% over the Administered Price Mechanism (APM) prices is allowed for gas produced from new wells and well interventions of ONGC/OIL from their nomination fields.
Impact Analysis:
Consumers in the PNGD segment of the CGD:
* Impact: Benefit from competitive gas prices due to the allocation of domestic gas on a priority basis and the revised pricing guidelines.
* Action Required: None specified, benefit from price stability.
Oil and Natural Gas Corporation Limited (ONGC) and Oil India Limited (OIL):
* Impact: Can benefit from a premium of 20% over the APM prices for gas produced from new wells and well interventions from their nomination fields. Subject to price floor and ceiling.
* Action Required: Implement new well and well intervention strategies to capitalize on the premium.
Gas Pipeline Operators:
* Impact: Required to install advanced measurement and monitoring systems as per PNGRB regulations to ensure precision metering and efficient pipeline management.
* Action Required: Ensure compliance with PNGRB regulations for installing and maintaining advanced measurement systems.
Ministry of Petroleum and Natural Gas:
* Impact: Responsible for achieving the target of 15% natural gas in the energy mix by 2030 and for monitoring the progress of various initiatives.
* Action Required: Continue implementing and monitoring the initiatives aimed at increasing natural gas production and consumption.
Petroleum and Natural Gas Regulatory Board (PNGRB):
* Impact: Responsible for issuing regulations and guidelines for gas distribution, including those related to metering and monitoring systems.
* Action Required: Continue to develop and enforce regulations to ensure efficient and safe gas distribution.
Key Entities Referenced
Ministry of Petroleum and Natural Gas: The Indian government ministry responsible for the exploration, production, refining, distribution, marketing, import, export, and conservation of petroleum, natural gas, and petrochemicals.
National Gas Grid Pipeline: A project to expand the natural gas pipeline infrastructure across India.
City Gas Distribution CGD: The network for distributing natural gas to domestic, commercial, and industrial consumers in cities.
Liquefied Natural Gas LNG: Natural gas that has been converted to liquid form for ease of storage and transportation.
Compressed Bio Gas CBG: Purified and compressed biogas, used as an alternative fuel.
Hydrocarbon Exploration and Licensing Policy HELP: The policy framework for awarding exploration acreages for oil and gas in India.
Petroleum and Natural Gas Regulatory Board PNGRB: The regulatory body in India for the petroleum and natural gas sector.
Oil and Natural Gas Corporation Limited Oil India Limited: Government owned oil and gas producers
LOK SABHA
UNSTARRED QUESTION No. 4628.
TO BE ANSWERED ON 21st August, 2025
INSTALLATION OF SMART METER AND DIGITAL MONITORING SYSTEM
UNDER NGD
4628. SMT. JYOTSNA CHARANDAS MAHANT:
SHRI RAJESH NARANBHAI CHUDASAMA:
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 current percentage of natural gas in India's energy mix along with the strategy and
initiatives of the Government towards increasing/achieving the target of 15 percent by
2030 including progress made in this regard so far;
(b) the challenges anticipated in achieving this target and the proposed solutions to address
them;
(c) the projected impact on the country's energy security and environmental sustainability
with the expansion of natural gas usage;
(d) the number of smart meters and digital monitoring systems that have been installed under
National Gas Distribution (NGD), State-wise; and
(e) the steps taken by the Government to encourage competitive gas prices?
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 (c) As per Energy Statistics 2025 released by Ministry of Statistics and Programme
Implementation, share of Natural Gas in India’s Energy mix was 7.0% (Provisional) during
Financial Year 2023-24. Government have taken various steps for increasing the share of
natural gas in the energy basket, which inter-alia, include expansion of National Gas Grid
Pipeline, expansion of City Gas Distribution (CGD) network, setting up of Liquefied Natural
Gas (LNG) Terminals, allocation of domestic gas to Compressed Natural Gas (Transport)/
Piped Natural Gas (Domestic) CNG (T)/PNG(D) on priority, allowing marketing and pricing
freedom with a ceiling price to gas produced from high pressure/high temperature areas, deep
water & ultra-deep water and from coal seams, Sustainable Alternative Towards Affordable
Transportation (SATAT) initiative to promote Compressed Bio Gas (CBG) etc.
Consumption of natural gas is impacted by its price vis-a-vis alternate fuels and cost
associated with its transportation across the country, including hilly areas and difficult
terrains. Gas prices are dependent on various factors viz. domestic production, international
availability, etc. Higher local production obviates need for additional imports. For increasing
domestic gas production, Government have notified Hydrocarbon Exploration and Licensing
Policy (HELP) for the award of exploration acreages shifting from Production Sharingmechanism to Revenue Sharing mechanism. Government further notified the policy reforms
on 28th February 2019, where many of the processes and approvals were relaxed to promote
“Ease of Doing Business”, Revenue Share from Category II & III type of basins were
removed, except for windfall gains, 7 years Royalty Holiday for Deep & Ultra-deep blocks,
concessional Royalty Rates for Deepwater and for ultra-deep water blocks, and fiscal
incentives have been provided for early monetization of fields along with Marketing and
Pricing freedom for natural gas.
Consumption of natural gas not only enhances environmental sustainability as it is a cleaner
and low-emitting fuel vis-a-vis other fossil fuels but also ensures energy securityby allowing
(i) the country to diversify its energy mix and thereby reduce its reliance on imported oil and
coal and (ii) reduce its vulnerability to the volatility of the international market.
(d) The data regarding the number of smart meters and digital monitoringsystems
established for national gas distributionis not maintained by the Government. However,
authorized entities implement such systems based on techno commercial feasibility in
accordance with the regulations and guidelines issued by the Petroleum and Natural Gas
Regulatory Board (PNGRB). For instance, in order to ensure precision metering, major gas
pipeline operators install advanced measurement systems such as Ultrasonic Meters, Turbine
Meters, and Rotary Positive Displacement Meters. These are integrated with digital Flow
Computers and Gas Chromatographs. All these metering components are integrated with
Centralized SCADA (Supervisory Control and Data Acquisition) System, enabling real-time
digital monitoring, efficient pipeline hydraulics management, and auto invoicing.
(e) With the endeavor to provide competitive gas prices to the consumers (in the PNG(D)
segment of the CGD), Government have been allocating domestic gas on priority basis, the
price of which is determined in accordance with the revised domestic natural gas pricing
guidelines vide Gazette Notification dated 07.04.2023 for gas produced from nomination
fields of ONGC/OIL, New Exploration Licensing Policy (NELP) blocks, and pre-NELP
blocks, where the Production Sharing Contract (PSC) provides for Government approval of
prices. Under the revised guidelines, the price of such natural gas is determined as 10% of the
monthly average of the Indian Crude Basket and is notified on a monthly basis. For gas
produced by ONGC and OIL from their nomination blocks, the APM price is subject to a
floor of $4.0/Metric Million British Thermal Unit (MMBTU) and a ceiling of $6.5/MMBTU.
The ceiling would be maintained for the next two financial years (2023-24 and 2024-25) and
then increased by $0.25/MMBTU each year. Further, Government vide notification dated
07.04.2023 also allowed a premium of 20% over the Administered Price Mechanism prices on gas
produced from new well and well interventions of Oil and Natural Gas Corporation Limited & Oil
India Limited from their nomination fields.This has led to price stability for consumers.
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