**Executive Summary**
This document presents the response to Unstarred Question No. 20 in the Lok Sabha regarding the National Gas Grid and City Gas Distribution (CGD) expansion in Tamil Nadu. It details the current status, progress over the last three years, and various initiatives related to gas infrastructure and pricing in the state. The report includes data up to November 2025 and mentions the National PNG Drive 2.0 initiative running from January 1, 2026, to March 31, 2026.
**Key Points / Main Content**
* **Current Gas Infrastructure:**
* Natural gas is supplied through pipelines and City Gas Distribution (CGD) networks.
* PNGRB authorizes entities for gas pipeline development under the PNGRB Act, 2006.
* Tamil Nadu is part of the 307 Geographical Areas (GAs) authorized for CGD network development.
* As of 30.11.2025, 1,31,745 PNG connections, 494 CNG stations, and 18,939 inch-km pipeline have been laid in Tamil Nadu.
* **CGD Expansion in Tamil Nadu:**
* PNGRB has authorized 18 GAs in Tamil Nadu.
* Authorized entities must provide approximately 2.30 crore PNG connections, establish 2,825 CNG stations, and lay 37,374 inch-km of pipeline infrastructure by 2032.
* **National PNG Drive 2.0:**
* Launched from 1st January 2026 to 31st March 2026.
* Aims to optimize existing infrastructure, promote new connections, and increase natural gas usage.
* Includes targeted consumer outreach and promotional initiatives by authorized entities.
* **Government Initiatives for Gas Availability:**
* Allocating domestic gas on priority to CNG (Transport)/PNG (Domestic) sectors.
* Diverting gas from non-priority sectors.
* Expanding CGD networks.
* Granting Public Utility Status to CGD projects.
* Promoting Bio-CNG (SATAT) initiatives.
* Prioritizing gas from deepwater, ultra-deepwater, and high-pressure-high temperature areas for CNG/PNG sectors.
* **Natural Gas Pricing:**
* Revised domestic natural gas pricing guidelines approved in 2023.
* Price determined as 10% of the monthly average of the Indian Crude Basket, subject to floor and ceiling prices.
* PNGRB has rationalized Unified Tariff, reducing tariff zones from three to two.
* Zone-1 tariff extended nationwide for CNG(T) and PNG(D).
* **Pricing Transparency and Consumer Protection:**
* CGD entities directed to display the break-up of CNG and PNG(D) prices.
* PNGRB mandates safety standards for CGD networks.
* All authorized entities must have a Consumer Complaint Cell.
**Impact Analysis**
**Consumers in Tamil Nadu**
* **Impact:** Increased access to natural gas, potentially lower transportation costs for CNG/PNG(D) due to tariff rationalization, enhanced pricing transparency, and a grievance redressal mechanism.
* **Action Required:** Utilize the Consumer Complaint Cell for any service-related issues and be aware of the pricing details provided by CGD entities.
**CGD Entities Authorized by PNGRB in Tamil Nadu**
* **Impact:** Must adhere to PNGRB's safety standards, implement consumer outreach programs for National PNG Drive 2.0, establish Consumer Complaint Cells, and comply with revised pricing guidelines.
* **Action Required:** Implement the necessary infrastructure, pricing mechanisms, and consumer grievance processes as per PNGRB's regulations and participate in the National PNG Drive 2.0.
**Petroleum and Natural Gas Regulatory Board (PNGRB)**
* **Impact:** Responsible for overseeing the expansion of CGD networks, regulating safety standards, ensuring pricing transparency, and managing consumer grievances related to gas distribution.
* **Action Required:** Enforce the regulations and guidelines related to CGD network development, pricing, and consumer protection, and continue to monitor the progress of CGD expansion in Tamil Nadu.
Key Entities Referenced
Petroleum and Natural Gas Regulatory Board (PNGRB): The regulator responsible for authorizing and regulating entities involved in gas pipeline and City Gas Distribution (CGD) network development.
National Gas Grid: The nationwide gas pipeline infrastructure being expanded, with focus on connecting Tamil Nadu.
City Gas Distribution (CGD): The distribution network for supplying natural gas to households and industries in cities, with ongoing expansion in Tamil Nadu.
Tamil Nadu: The state where the National Gas Grid and CGD network expansion are being discussed.
National PNG Drive 2.0: An initiative led by PNGRB to increase the usage of natural gas across user categories.
LOK SABHA
UNSTARRED QUESTION No. 20
TO BE ANSWERED ON 29th January, 2026
NATIONAL GAS GRID AND CGD EXPANSION IN TAMIL NADU
20. THIRU DAYANIDHI MARAN:
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) whether Tamil Nadu is connected to the National Gas Grid and whether City Gas Distribution
(CGD) expansion in the State continues to rely on higher-cost LNG or LCNG supply models, if
so, the details thereof;
(b) the status of CGD rollout in Tamil Nadu during the last three years including household PNG
connections provided, CNG stations commissioned, pipeline (inch-km) laid and targets versus
achievements, district-wise;
(c) whether Petroleum and Natural Gas Regulatory Board (PNGRB) National Drive 2.0 provides
any preferential support, viability gap funding or time-bound connectivity assurance for States
like Tamil Nadu that remain outside the grid, if so, the details thereof;
(d) whether the Government is likely to publish a time-bound roadmap for connecting Tamil Nadu
to the National Gas Grid and ensuring the full benefits of "One Nation, One Grid, One Tariff" to
consumers, if so, the details thereof; and
(e) the steps taken to curb pricing opacity, ensure strict safety compliance and protect consumer
interests in Tamil Nadu under ongoing CGD expansion drives?
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 (e) Natural gas is supplied through a network of natural gas pipelines and through City Gas
Distribution (CGD) Network. Petroleum & Natural Gas Regulatory Board (PNGRB) is the authority
to grant authorization to the entities to lay, build, operate or expand Gas Pipeline as per PNGRB Act,
2006. The status of operational as well as under construction/ partially commissioned natural gas
pipelines passing through the state of Tamil Nadu is at Annexure-I.
Providing Piped Natural Gas (PNG) connections, establishment of Compressed Natural Gas (CNG)
stations and laying of pipeline infrastructure is part of the development of City Gas Distribution
(CGD) Network, which is carried out by the entities authorized by PNGRB as per their Minimum
Work Programme (MWP) and techno-commercial feasibility. After completion of 12/12A CGD
bidding round, PNGRB has authorized entities for the development of CGD network in 307
Geographical Areas (GAs), covering the entire mainland area (including the state of Tamil Nadu) for
the development of CGD network across the country.PNGRB has authorized 18 GAs in state of Tamil Nadu (including 1 GA spread over Andhra
Pradesh, Karnataka & Tamil Nadu and 1 GA spread over Puducherry & Tamil Nadu). As per MWP,
authorized entities have to provide approx2.30 crore PNG(D) connections, establish 2,825 CNG
stations and lay 37, 374 inch-km pipeline infrastructure in the state of Tamil Nadu by 2032. As on
30.11.2025, authorised CGD entities have provided 1,31,745 PNG(D) connections, established 494
CNG stations and laid 18,939 inch-km pipeline in Tamil Nadu. The status of CGD progress in the
state of Tamil Nadu during the last three years is at Annexure-II.
PNGRB, in collaboration with CGD entities, has launched the National PNG Drive 2.0 from 1st
January 2026 to 31st March 2026. PNGRB has informed that the initiative aims to ensure optimal
utilization of existing infrastructure, promote new connections and activate non-billed customers,
with an overall objective to increase the usage of natural gas across the diverse user categories.
PNGRB has also informed thatas part of PNGRB’s National PNG Drive 2.0, all authorized entities
in Tamil Nadu are actively undertaking targeted consumer outreach and promotional initiatives
which inter alia includes enhanced stakeholder engagement, consumer outreach, and operational
focus across theGA to accelerate the adoption of domestic PNG connections.
Government have taken various steps to ensure the availability of Natural Gas to CNG (Transport)/
PNG (Domestic) sector in the country (including Tamil Nadu) which, inter-alia, includes allocating
domestic gas on priority basis to CNG (T)/ PNG(D); diverting domestic gas from non-priority
sectors to meet the requirement for CNG (T)/PNG(D) sector, expansion of CGD network, grant of
Public Utility Status to CGD projects, notification for supply of domestic gas through available
mode (including cascade mode) for CNG(T)/ PNG(D) purpose, allocating domestic natural gas for
CNG (T) and PNG (D) segments on a two-quarter advance basis, expansion of National Gas Grid
Pipeline, setting up of Liquefied Natural Gas (LNG) Terminals, Sustainable Alternative Towards
Affordable Transportation (SATAT) initiatives to promote Bio-CNG, etc. Government has also
notified that gas produced from discoveries in Deepwater, Ultra Deepwater and High Pressure-High
Temperature areas, in any situation which may require proportionate distribution of the gas offered
under the bidding process, the contractor shall offer gas to bidders belonging to CNG (T)/ PNG (D)
sector on priority.
The Government have approved the revised domestic natural gas pricing guidelines in 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 also permitted 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.
Further, PNGRB, has rationalised the Unified Tariff by reducing tariff zones from three to two and
notified transportation tariffs of Rs. 54/MMBTU for Zone-1 (up to 300 km) and Rs.
102.86/MMBTU for Zone-2 (beyond 300 km), effective from 01.01.2026. Zone-1 tariff has been
extended nationwide for CNG (T) and PNG (D), resulting in nearly 50% reduction in transportationcharges for consumers beyond 300 km. This reform further improves affordability and equity in
access to natural gas.
Like other States/ Geographical Areas, CGD entities of Tamil Nadu are also being allocated
domestic gas as per the extant guidelines for gas allocation to CNG (T)/ PNG(D) segments of CGD
network. The retail selling price (RSP) of CNG in any GA is determined by the concerned CGD
entity authorized by PNGRB after considering cost of gas procured, state taxes, tariff and other
components. However, the allocation of domestic natural gas for CNG(T)/ PNG(D)segments of
CGDnetwork plays a crucial role in determining the RSP to the consumer. After considering
domestic gas allocation, any additional requirement beyond the allocated domestic gas is being
sourced by individual CGD entity through market priced gas.
To enhance pricing transparency, the Government, in 2014, directed all CGD entities to display
break-up of CNG price at CNG stations and to furnish the break-up of PNG (D) price in invoices,
indicating Cost of gas to the CGD entity, Supply and Distribution Cost, Entity’s margin, Excise
Duty, VAT, any other Tax. Further, PNGRB is mandated under the PNGRB Act to lay down safety
standards for CGD networks. The entities are regulated in this regard by relevant safety standards
and guidelines prescribed by PNGRB, including the Technical Standards and Specifications
including Safety Standards (T4S), Integrity Management System (IMS) for City or Local Natural
Gas Distribution Networks, Codes of Practices for Emergency Response and Disaster Management
Plan (ERDMP)Regulations. Further, in order to address the grievances of individual consumers,
every authorized CGD entity (in accordance with the PNGRB regulations) is required to create a
Consumer Complaint Cell for registration of complaints/grievances personally, over telephone or
through e-mail (emergency contact numbers and Consumer Care numbers of all entities are hosted
on the PNGRB website). The consumers can also lodge their grievances 24x7 to the public
authorities on any subject related to service deliveryon Centralized Public Grievance Redress and
Monitoring System (CPGRAMS) portal.
*****ANNEXURE-I
ANNEXURE REFERRED TO IN REPLY TO PART (a) TO (e) OF LOK SABHA UNSTARRED QUESTION NO. 20 TO BE ANSWERED ON
29.01.2026 REGARDING NATIONAL GAS GRID AND CGD EXPANSION IN TAMIL NADU.
Details of the Common Carrier Natural Gas Pipelines passing through the state of Tamil Nadu.
Operational NGPL passing through the state of Tamil Nadu
S. Name of the Natural Auth. Date of Target Date of State/UT Authorised Capacity Operating Under
No Gas Pipelines Entity Authorization Completion Passing through Length (MMSCMD) (Km) Construction
(Km) (Km)
1 Cauvery Basin GAIL 04.11.2009 Completed Tamil Nadu 240 4.33 242 -
Network
Under Construction NGPL passing through the state of Tamil Nadu
S. Name of the Natural Auth. Date of State/UT Authorised Capacity Operating Under
No Gas Pipelines Entity Authorization Passing through Length (MMSCMD) (Km) Construction
(Km) (Km)
1 Ennore Nellore GTIL 02.12.2014 30.04.2020* Tamil Nadu 220 36 0 220
*Authorisation was cancelled vide PNGRB order dated 20.10.2022, which has been set aside by APTEL vide judgement dated 04.10.2023.
Partially Commissioned NGPL passing through the state of Tamil Nadu
S. Name of the Natural Authorize Date of State/UT Authorised Capacity Operating Under
No. Gas Pipelines d Entity Authorization Passing through length (MMSCMD) Length Construction
(Km) (Km) (Km)
1 Kochi Koottanad GAIL 31.05.2012 31.12.2025 Kerala, Tamil Nadu, 1104 16 644 460
Bangalore Mangalore Karnataka, UT of
Pipeline Puducherry
2 Ennore-Thiruvallur- IOCL 10.12.2015 31.03.2025 Tamil Nadu, 1431 84.67 1094 337
BengaluruPuducherry- Karnataka, Andhra
Nagapattinam Madurai- Pradesh, UT of
Tuticorin Pipeline Puducherry
(Source: PNGRB)ANNEXURE-II
ANNEXURE REFERRED TO IN REPLY TO PART (a) TO (e) OF LOK SABHA UNSTARRED QUESTION NO. 20 TO BE ANSWERED
ON 29.01.2026 REGARDING NATIONAL GAS GRID AND CGD EXPANSION IN TAMIL NADU.
Status of CGD progress in the state of Tamil Nadu during last three years
March, 2024 March, 2025 November, 2025
PNG CNG Pipeline PNG CNG Pipeline PNG CNG Pipeline
(Domestic) Stations Infrastructure (Domestic) Stations Infrastructure (Domestic) Stations Infrastructure
(Inch KM) (Inch KM) (Inch KM)
MWP Target 2,30,94,884 2,825 37,374 2,30,94,884 2,825 37,374 2,30,94,88 2,825 37,374
4
Pro-Rata Target 16,07,849 315 6,825 3315097 616 10968 4717706 822 14897
Achievements 35,152 364 10,616 88583 468 16573 131745 494 18939
Note: Including 1 GA spread over Puducherry (UT) & Tamil Nadu and 1 GA spread over Andhra Pradesh, Tamil Nadu and Karnataka
(Source: PNGRB)
******