India Approves Incentive Scheme for Domestic PNG Connections

The Indian government has approved an incentive scheme for domestic Piped Natural Gas (PNG) connections, effective September 1. The scheme aims to promote the conversion of unbilled connections into working gas connections and expand the PNG network in new areas.

The Ministry of Petroleum and Natural Gas stated that there are currently 1.74 crore domestic PNG connections in the country. Eligible City Gas Distribution (CGD) companies will receive an additional 200 SCM of domestically-produced, lower-priced APM gas for every incremental billed domestic PNG connection achieved during the performance period.

The scheme will run in two tranches across six months and is expected to reduce the payback period on capital expenditure for domestic PNG connections from around 10 years to approximately three years. The ministry also highlighted the benefits of piped gas, including lower costs and reduced dependence on cylinder delivery.