India Seeks to Expand Piped Gas Network as LPG Crisis Deepens

2 hours ago 3

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(Bloomberg) — India has activated emergency rules to fast-track the deployment of natural gas pipelines, as escalating tensions in the Middle East deepen shortages of liquefied petroleum gas, the nation’s preferred cooking fuel.

Financial Post

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The oil ministry invoked the Essential Commodities Act to accelerate regulatory approvals that have previously stifled consumption, according to a statement late on Tuesday. The reforms would “facilitate a gradual transition from LPG to piped natural gas,” it said in the statement.

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The plan seeks to address chronic bureaucratic delays, granting automatic project approval if local bodies fail to provide timely clearances.

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There are 15 million homes currently receiving gas through pipelines, and six million more could be easily connected to the network, according to the government. That pales in comparison to the estimated 330 million domestic LPG users. The skewed ratio provides growth headroom that suppliers, such as Indraprastha Gas Ltd. are now seeking to exploit to widen market share. 

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While LPG shortages are affecting citizens directly, natural gas supply is not immune from shocks, as India imports about a half of what it needs, much of which from the Middle East. The war wrought havoc on many industries that depend on the fuel, after missile strikes on the world’s largest export facility in Qatar, as well as the effective closure of the Strait of Hormuz, halted overseas flows. 

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A longstanding goal to achieve 15% gas share in the country’s energy mix by 2030 now looks increasingly unrealistic, with the fuel’s contribution lingering around 6% for the past decade. 

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An unfavorable tax regime has increased fuel costs for bulk users, and bureaucratic delays have hampered projects in cities, resulting in inadequate last-mile connectivity while grid pipelines remain under-utilized. 

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