Switch to PNG where available or lose LPG supply: Government
What's the story
The Indian government has mandated a switch from liquefied petroleum gas (LPG) to piped natural gas (PNG) within three months of notification in areas where such connectivity is available. The Ministry of Petroleum and Natural Gas issued this order on March 24, underlining that LPG supply will be cut off if consumers don't make the switch where PNG is available. This move comes as India faces an LPG shortage due to disruptions in West Asia affecting key supply sources.
Supply stability
PNG's advantages and the order's stipulations
The government is now pushing households and commercial users toward PNG, which is considered a more reliable option due to its diversified sourcing and domestic production. Unlike LPG cylinders, PNG is continuously supplied through pipelines, eliminating the need for refills. The order also states that LPG supply will continue only if it is "technically infeasible" to provide a PNG connection with a no-objection certificate from the supplier.
Infrastructure expansion
Streamlining gas pipeline rollout across India
The new order, issued under the Essential Commodities Act, aims to speed up the rollout of gas pipelines across India. Permissions for laying these pipelines must now be granted within fixed timelines or they will be deemed approved. Authorities can't impose additional charges beyond those prescribed by law. In housing complexes, access must be granted within three working days, while last-mile PNG connections should be provided within 48 hours.
Compliance measures
Monitoring and compliance measures
The order gives extensive powers to ensure compliance. Designated officers can intervene in land access disputes with authority similar to a civil court. Companies must start pipeline work within four months of approval or face penalties, including possible loss of exclusivity. The Petroleum and Natural Gas Regulatory Board will monitor implementation, track approvals, and ensure adherence to these new regulations.
Consequence
Consequences of households not applying for and obtaining PNG connection
For those households that are not applying for and obtaining a PNG connection when notified by an authorized entity that has laid a pipeline, it said, "The LPG supply to such an address shall cease after three months from the date of the communication." However, "the supply of LPG...shall not cease if the authorized entity issues a no-objection certificate (NOC) on the ground that it is technically infeasible to provide a piped natural gas connection," it said.