India aims to establish 18,336 compressed natural gas (CNG) stations across the country by 2032 as part of its city gas distribution (CGD) network expansion, Suresh Gopi, Minister of State in the Ministry of Petroleum and Natural Gas announced in a written reply to the Rajya Sabha on August 1. As of May 2024, India had about 7,000 CNG stations.

The establishment of these CNG stations is being managed by companies authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB) under their minimum work programme (MWP). Following the 12/12A CGD bidding round, PNGRB has authorised companies to set up CGD networks in 307 geographical regions of India. This initiative aims to cover nearly 100% of the country’s geographical area, spanning approximately 733 districts across 34 states and union territories.

The CGD sector in India includes multiple segments: CNG used as an auto-fuel, and piped natural gas (PNG) used in homes, and commercial and industrial establishments.

The distribution of CNG stations in India is currently uneven, with the majority located in northern and western regions of the country. The western states of Gujarat and Maharashtra have the highest number of CNG refuelling stations, followed by northern states of Uttar Pradesh, Delhi National Capital Territory, and Haryana.

India also has the most cities in the top ten most polluted cities globally. To combat urban air pollution, the Indian government is actively promoting the use of natural gas, especially in high-polluting sectors like transportation.

As such, the government plans to increase the share of natural gas in the overall energy mix to 30% by 2030, up from the current 6-7%. Both intracity and long-distance transportation are expected to significantly drive the demand for natural gas.

Minister Gopi further highlighted several measures the government has undertaken to promote CNG use, including reallocating domestic gas from power and other non-priority sectors to meet the needs of CNG and PNG, prioritising these sectors for domestic gas allocation, and designating them as a priority for the supply of high-pressure, high-temperature gas in situations requiring proportionate gas distribution under the bidding process. High-pressure, high-temperature gas refers to wells operating under extreme conditions.