LPG crisis in India: Where PNG comes from and how long it can last

Amid the ongoing LPG crisis in India due to the conflict in West Asia, the country is now pushing a shift to Piped Natural Gas (PNG). India is the fourth largest importer of Liquified Natural Gas (LNG).

In order to tackle the LPG shortage due to the ongoing conflict and the blocking of the Strait of Hormuz, the switch to PNG has been recommended by the Ministry of Petroleum and Natural Gas to prioritise the supply of LPG to regions that may lack such infrastructure.

The Centre has mandated that households with access to Piped Natural Gas (PNG) must switch from LPG cylinders within three months of notification, or face disconnection of their LPG supply.

In a post on X, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri had mentioned that "steps to ensure that 100 per cent supply of CNG and PNG to domestic consumers is ensured and other industries continue to get 70-80 per cent of their supplies, despite the war situation."

"We are committed to ensure uninterrupted supply of affordable energy to our domestic consumers. There is no shortage for domestic consumers and no reason to panic," the minister added.

India's production of natural gas

India is looking at supply risks of LPG, however, it also produces some of its own natural gas.

The supply of India's gas is not entirely dependent on the imports. It has produced nearly 36.4 billion cubic metres domestic gas in the year 2023, which is approximately half of the country's gas demand.

It produces gas from different sedimentary basins, including deepwater Krishna-Godavari (KG) basin off the eastern coast, being one of the biggest contributors.

47 per cent of India's onshore production is from Assam and Tripura basins, which is 13 per cent of its total gas supply.

India, however, is still heavily dependent on imported oil and gas, as the country imports approximately 88 per cent of the crude oil it consumes. India is the second largest importer of LPG.

Offshore fields run by ONGC and Oil India stand as a leading operators in Mumbai offshore.

Will piped gas run out?

Immediate shortage of PNG is not expected. However, the price for PNG may see a surge amid Strait of Hormuz disruptions.

If the disruptions persist after April, the prices could hike by 20-30 per cent, according to reports.

Difference between LPG and PNG

Known for its cost-effectiveness and customer convenience, the PNG system is usually a pipeline-network that transports natural gas from processing plants to residential and commercial spaces.

Produced during refining of gas and oil products, LPG is one of the most used fuels. In areas where the option of PNG is not available, LPG cylinders are used to provide fuel for indoor and outdoor uses.