Executive Summary:
This document addresses Lok Sabha Unstarred Question No. 4628 regarding India's natural gas strategy. It outlines the government's initiatives to increase natural gas to 15% of the energy mix by 2030, the challenges involved, and the projected impact on energy security and environmental sustainability. The document also details steps taken to encourage competitive gas prices and clarifies that data on smart meters and digital monitoring systems for national gas distribution is not centrally maintained.
Key Points / Main Content:
* **Natural Gas Target and Current Status:**
* The goal is to increase natural gas to 15% of India's energy mix by 2030.
* In FY 2023-24, natural gas constituted 7.0% (provisional) of India's energy mix.
* **Government Initiatives:**
* Expansion of National Gas Grid Pipeline and City Gas Distribution (CGD) network.
* Establishment of Liquefied Natural Gas (LNG) Terminals.
* Prioritized allocation of domestic gas to CNG (Transport & Domestic) and PNGD.
* Marketing and pricing freedom with ceiling price for gas from specific areas.
* Sustainable Alternative Towards Affordable Transportation (SATAT) initiative to promote Compressed Bio Gas (CBG).
* **Challenges and Solutions:**
* Consumption is impacted by gas prices compared to alternate fuels and transportation costs.
* Gas prices depend on domestic production and international availability.
* Hydrocarbon Exploration and Licensing Policy (HELP) promotes domestic gas production.
* Policy reforms in 2019 relaxed processes, removed revenue share (except windfall gains), provided royalty holidays and concessional rates, and offered fiscal incentives.
* **Impact on Energy Security and Environmental Sustainability:**
* Increased natural gas usage enhances environmental sustainability due to lower emissions.
* It ensures 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:**
* The Government does not maintain central 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 and PNGRB guidelines.
* Major gas pipeline operators use advanced measurement systems integrated with SCADA for real-time monitoring and efficient management.
* **Competitive Gas Prices:**
* Domestic gas is allocated on a priority basis to the PNGD segment of the CGD.
* Prices are determined according to revised domestic natural gas pricing guidelines (Gazette Notification dated 07.04.2023).
* The price is 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.
* A premium of 20% over Administered Price Mechanism (APM) prices is allowed for gas from new wells and well interventions, leading to price stability.
Impact Analysis:
* **Consumers (PNGD Segment):**
* Impact: Benefit from competitive gas prices due to prioritized domestic gas allocation and pricing guidelines.
* Action Required: None specified.
* **Oil and Natural Gas Corporation Limited (ONGC) and Oil India Limited (OIL):**
* Impact: Entitled to a premium on gas produced from new wells and well interventions. Subject to APM price floor and ceiling.
* Action Required: Adhere to revised domestic natural gas pricing guidelines for gas production from nomination blocks and implement new well and well intervention strategies to maximize benefits from premium pricing.
* **Gas Pipeline Operators:**
* Impact: Responsible for implementing advanced measurement and monitoring systems.
* Action Required: Ensure compliance with PNGRB regulations and guidelines regarding metering and monitoring infrastructure, and continue to integrate systems with SCADA for real-time monitoring and efficient management.
* **Government:**
* Impact: Responsible for achieving the target of 15% natural gas in the energy mix by 2030.
* Action Required: Continue to implement and monitor the effectiveness of policies and initiatives aimed at increasing domestic gas production, expanding infrastructure, and ensuring competitive gas prices.
Key Entities Referenced
National Gas Distribution: A program initiative, abbreviated as NGD, focused on gas distribution within India.
Ministry of Petroleum and Natural Gas: The Indian government ministry responsible for petroleum and natural gas related affairs.
Energy Statistics 2025: A report released by the Ministry of Statistics and Programme Implementation providing energy statistics for India.
City Gas Distribution: The network, abbreviated as CGD, responsible for distributing gas within cities in India.
Liquefied Natural Gas: Natural gas that has been converted to liquid form for ease of storage or transport, abbreviated as LNG.
Sustainable Alternative Towards Affordable Transportation: An initiative, abbreviated as SATAT, to promote Compressed Bio Gas (CBG) in India.
Hydrocarbon Exploration and Licensing Policy: A policy, abbreviated as HELP, for awarding exploration acreages for hydrocarbons in India.
Petroleum and Natural Gas Regulatory Board: The regulatory body, abbreviated as PNGRB, responsible for regulating the petroleum and natural gas sector in India.
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.
****