The ongoing conflict in West Asia is casting a shadow over India’s energy supplies. While the Liquefied Petroleum Gas (LPG) market has already felt the impact, attention is now turning to the country’s rapidly growing Piped Natural Gas (PNG) network, which delivers gas directly to homes and businesses. What is Piped Natural Gas (PNG)? Utilisation: PNG is natural gas that is supplied through pipelines to various users, including: Booming demand for PNG in homes The demand for PNG is increasing, especially in urban areas, as more households switch from traditional LPG cylinders to piped gas connections. Currently, India has more than 1.65 crore PNG connections, and this number is rapidly growing due to government initiatives. The use of CNG in vehicles is also on the rise, making it the second-most popular auto fuel after petrol. Will the West Asia Conflict affect your kitchen gas? With disruptions affecting LPG supplies, many Indian households are wondering if their PNG supply could be next. While an immediate shortage is unlikely, the situation is complex. Where does India’s piped gas come from? India’s PNG supply is a mix of: Domestic production: About half of the PNG comes from natural gas drilled within India by companies like ONGC and Reliance. Liquefied Natural Gas (LNG) imports: The remaining half is imported in the form of LNG which is then gasified. Government prioritizes home gas supply In case of a supply squeeze, the government usually prioritizes essential sectors like fertilizer plants and households with PNG connections. And this is what the government has done this time. This also means that industries and power plants are likely to be affected first. Factories might switch to alternative fuels like fuel oil, LPG, or even coal, while gas-fired power plants might reduce their electricity generation. India’s reliance on natural gas imports Despite having some domestic gas production, India relies heavily on natural gas imports to meet its PNG needs. Qatar: A key supplier A significant portion of India’s natural gas imports comes from Qatar. Over half of these imports are secured through long-term contracts with Qatari suppliers. The Strait of Hormuz: A critical chokepoint Gas shipments from Qatar and the UAE must pass through the Strait of Hormuz, a narrow waterway that has become a focal point of the West Asia conflict. Around 50-55% of India’s gas imports travel through this route. No strategic reserves of natural gas Unlike crude oil, India does not maintain strategic reserves of gas. The available gas is primarily stored as working inventory at regasification terminals, which convert imported LNG back into gas. These stocks can only cover about one to two weeks of imports. Price hikes likely For urban consumers using PNG, the immediate concern is likely to be price increases rather than supply shortages. If disruptions at the Strait of Hormuz persist, the gas market will respond by raising prices and reducing industrial demand. Ultimately, both households and factories will face higher costs, with industries potentially experiencing deeper cuts in supply. How many PNG LPG connections are there in India? Post navigation Soon, get 10 kg gas in 14.2 kg LPG cylinders:Cooking gas prices can reduce
