Meters being installed in Vijaynagar in Mysuru for the Piped Natural Gas (PNG) project. | Photo Credit: M A Sriram

India’s piped natural gas (PNG) capacity additions have slowed sharply in 2024-25, signalling a cooling phase after two years of accelerated expansion.

Data from the Petroleum and Natural Gas Regulatory Board show that India’s total natural gas pipeline network stood at 239.472 million metric tonnes (MT) in 2024-25, up 2.23 per cent year-on-year, compared with 5.04 per cent growth in 2023-24 and a peak 10.57 per cent expansion in 2022-23.

With LPG remaining 60-62 per cent import-dependent and heavily exposed to West Asian supply routes, the recent geopolitical tensions in the region have sharpened India’s energy security concerns, prompting a renewed policy push to accelerate PNG adoption in pipeline-connected areas.

“Technological disruptions of supply of liquefied petroleum gas (LPG) and of liquefied natural gas (LNG) have increased the urgency of developing supply solutions based on natural gas (NG) in pipelines for fuel access in major urban areas,” explained Gaurav Kedia, Chairman, Indian Biogas Association.

However, experts caution against interpreting last fiscal’s moderation as a structural downturn. Sourav Mitra, Partner, Grant Thornton Bharat, said the current phase reflects normalisation after a period of rapid build-out. “A large part of the earlier spike was driven by the commissioning of several trunk pipelines and key city gas distribution (CGD) backbone linkages that had been under construction for years. As these projects transitioned from execution to operational phases, the base effect naturally pulled down year-on-year growth rates,” he said.

Mitra added that pipeline investments typically move in cycles- rapid expansion followed by consolidation, with more than 10,000 km of pipelines still under various stages of development.

State-level data show capacity concentrated in high-demand corridors. Gujarat leads with 26.130 million MT of PNG capacity in 2024-25, followed by Maharashtra at 23.088 million MT and Uttar Pradesh at 21.748 million MT.

Karnataka (15.962 million MT) and Tamil Nadu (15.879 million MT) also account for significant shares, reflecting established city gas distribution networks and industrial demand.

In contrast, Telangana (7.613 million MT), Odisha (7.457 million MT), Kerala (6.940 million MT), Bihar (6.015 million MT) and Delhi (4.965 million MT) remain at lower capacity levels. Experts noted that prioritising Gujarat and Uttar Pradesh reflects a sequencing strategy anchored around demand-dense regions to ensure faster utilisation and stronger project viability, rather than a short-term response to fuel shortages.

However, Kedia noted that pipeline construction tied to city gas distribution networks has been stalling for several reasons, including right-of-way constraints, construction delays, and natural saturation in certain distribution corridors. “This, however, is not an indictment of a lack of demand; in fact, gas demand in India is high and is structurally robust,” he said.

Published on March 30, 2026