On 24 March 2026, the Ministry of Petroleum and Natural Gas has issued a new order mandating households to switch to PNG in areas where piped natural gas connectivity already exists, with LPG supply liable to cease after three months if the switch is not undertaken. The Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026, aims to facilitate expansion and regulation of gas pipeline infrastructure.
Background:
This notification comes amidst sustained pressure on Liquefied Petroleum Gas (LPG) supply chains, global disruptions affecting natural gas availability, and the government’s objective of promoting fuel diversification by expanding pipeline-based natural gas to domestic consumers, thereby optimising LPG availability in areas without gas connectivity.
This Order has been issued under Section 3 of the Essential Commodities Act, 1955.
Key Highlights:
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This Order seeks to fast-track the expansion of gas pipeline infrastructure, ease regulatory and procedural barriers, promote the use of piped natural gas (PNG), and optimise LPG distribution in areas with natural gas connectivity.
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Clause 2 defines key terms, establishing clarity for implementation, such as:
authorised entity
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Pipeline
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Public area
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Housing area
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Non-public area
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Underground pipeline
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Clause 3 sets out the scope and applicability of the Order and applies to:
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Public authorities
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Non-public entities
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Authorised entities engaged in laying, building, operating, or expanding gas pipelines and distribution networks
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All applications for pipeline laying or related permissions that were pending till the date of this Order.
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Clause 4 requires public authorities to grant pipeline permissions within prescribed timelines, providing for deemed approvals in case of delay, and limiting charges to those specified under the Order.
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Clause 5 requires permissions for pipeline laying in housing areas to be granted within prescribed timelines, providing for last-mile connectivity to domestic PNG consumers, and specifying procedures where such permissions are withheld, and including the issuance of public notices.
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Clause 6 lays down the procedure for granting pipeline access in non-public areas, providing for access either through mutual agreement between the authorised entity and the landowner or through intervention by a designated officer where agreement is not reached. It also provides for compensation to landowners where right-of-way is granted through official orders.
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Under Clause 7, the LPG supply to a household may cease after three months from the date of communication where all the following conditions are satisfied:
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The household is in an area where an authorised gas entity has already laid a natural gas pipeline or can supply natural gas.
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The authorised entity has issued a written communication to the household, through registered or speed post, inviting it to apply for a domestic PNG connection.
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The household fails to apply for a PNG connection within the stipulated period after receipt of such communication.
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Clause 8 provides for consequences where an authorised entity fails to lay pipelines within the decided timelines after the grant of permission, including penalties under the applicable authorisation framework and possible withdrawal of exclusivity for the concerned area.
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Clause 9 imposes restrictions on the use of land within the right-of-way corridor, prohibiting construction, excavation, or any activity that may damage pipelines or associated facilities, and places obligations on landowners and occupiers to coordinate with authorised entities to ensure safe operation of pipeline infrastructure.
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Clause 10 designates the Petroleum and Natural Gas Regulatory Board (PNGRB) as the nodal agency responsible for monitoring the implementation of the Order and overseeing compliance by authorised entities.
[Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026, published on 24-3-2026]
