India’s operational natural gas pipeline expands by 62.6%, development of 10,805 km under execution: Ministry

The length of operational natural gas pipeline in the country has increased from 15,340 kilometres (Kms) in 2014 to 24,945 Kms, a whopping 62.6 per cent as of September 10, 2024, the Ministry of Petroleum & Natural Gas said in its year-end review of the last year.

The ministry stated that the development of about 10,805 km of natural gas pipeline is under execution.

With the completion of these pipelines authorised by The Petroleum and Natural Gas Regulatory Board (PNGRB), the national gas grid would be completed and would connect all major demand and supply centres in India, the ministry stated.

The move will ensure easy availability of natural gas across all regions and also help to achieve uniform economic and social progress.

On January 7, the ministry stated that PNGRB has amended PNGRB (Determination of Natural Gas Pipeline Tariff) Regulations to incorporate the regulations pertaining to Unified Tariff for natural gas pipelines with a mission of “One Nation, One Grid and One tariff.”.

PNGRB has notified a levelized unified tariff of Rs 80.97/MMBTU w.e.f. June 1, 2024 and created three tariff zones for the unified tariff, where the first zone is up to a distance of 300 km from the gas source, the second zone is 300-1200 km, and the third zone is beyond 1200 km.

The national gas grid covers all the interconnected pipeline networks owned and operated by entities, viz., Indian Oil Corporation Limited, Oil and Natural Gas Corporation Limited, GAIL (India) Limited, Pipeline Infrastructure Limited, Gujarat State Petronet Limited, Gujarat Gas Limited, Reliance Gas Pipelines Limited, GSPL India Gasnet Limited and GSPL India Transco Limited.

The reform will especially benefit the consumers located in the far-flung areas where currently the additive tariff is applicable and facilitate the development of gas markets and the vision of the government to increase the gas utilisation in the country, the ministry stated.

PNGRB has authorised 307 geographical areas for the development of City Gas Distribution (CGD) infrastructure with a potential coverage of about 100 per cent of the country’s area and 100 per cent of the population. As of September 30, 2024, the total number of PNG (D) connections and CNG stations in the country was 1.36 crore and 7259, respectively.

The ministry added that to cater to the growing demand of the CGD sector and to protect the common people from price volatility, the government has released new CGD sector gas allocation guidelines wherein the allocation of the PNG (domestic) segment was increased (i.e., 105 percent of PNGD consumption in the previous quarter) and the balance available volume is to be supplied to the CNG (T) segment on a prorate basis.

Sharing information on exploration and production, the ministry stated that a total of 144 blocks covering more than 242,056 sq km have been allocated to the companies in eight concluded OALP bid rounds with a committed investment of 3.137 billion USD.

To date, 13 hydrocarbon discoveries have been made in blocks awarded under OALP and one discovery is already producing gas (0.44 MMSCMD) in Gujarat, while other discoveries are under the appraisal phase. Further in round IX of OALP, an area of approximately 1,36,596 sq. km. spread over 8 sedimentary basins was offered and the same has received a very good response from the bidders.

The bids received are under evaluation and blocks will be awarded to successful bidders very soon. Thereafter, an area of 191,986.21 sq km has been finalised for international competitive bidding in the OALP Bid Round-X.

Further, a total of 741 (132 exploratory and 609 development) wells have been drilled in FY 2023-24, the ministry stated.