India launches incentive scheme to expand domestic piped gas access

The Indian government has approved a new incentive scheme to accelerate the expansion of domestic piped natural gas (PNG) connections. Effective September 1, 2026, the initiative aims to encourage City Gas Distribution (CGD) entities to expand household networks and convert inactive connections into active, billed accounts.

Under the scheme, eligible distributors will receive an additional allocation of 200 standard cubic metres of cheaper, domestically produced APM gas for every incremental billed domestic PNG connection. This allocation is intended to reduce reliance on expensive imported liquefied natural gas (LNG) and improve the financial viability of infrastructure expansion. The government estimates that the scheme could reduce the investment payback period for domestic PNG connections from approximately ten years to nearly three years.

In a separate infrastructure development, Oil and Natural Gas Corporation (ONGC) and Indradhanush Gas Grid Limited (IGGL) have commissioned gas evacuation facilities in Assam. This includes the successful injection of gas into the Dergaon-Dimapur Pipeline, which connects Nagaland to the National Gas Grid for the first time. This development is expected to facilitate the use of indigenous gas from ONGC’s Jorhat Asset, potentially reducing LNG imports and generating significant annual economic value.