Piped Natural Gas: Why and Which Companies to Benefit?

Expanding nationwide city gas distribution coverage is part of the Indian government’s target of raising India’s share of natural gas in its energy basket to 15% by 2030 from the current 6.8%.

What is Piped Natural Gas?

It is the same natural gas which is brought up to the kitchen appliance at the consumer end through a Pipeline network. PNG is supplied continuously, 365 days a year, 24 hours a day.

PNG VS LPG

LPG is Liquefied Petroleum Gas and PNG is Piped Natural Gas. LPG is supplied in liquid form just as the name suggests in cylinders whereas PNG is supplied through a pipeline.

Why Piped Natural Gas?

PNG is more advantageous than LPG. There are several reasons as to why PNG is more advantageous than LPG.

Continuous and uninterrupted supply – PNG will be supplied to your house 24 hours a day, 7 days a week all through the year. You do not need to worry about storing PNG.

Easily available – Once you get a connection, you will get it supplied to your house continuously through a pipeline. PNG is available as and when you want it. When you switch your gas stove on, It will instantaneously be available.

Safety 24×7 – PNG is safe. The pressure of PNG is just 21 millibar. The pressure of PNG is 200 times less than gas supplied through cylinders. Natural gas is lighter than air, in case of any leakage; it will instantaneously mix with air and evaporate. But, LPG is heavier than air, and so in case of any leakage, it will settle down in the surroundings, leaving higher chances of fire from the cylinder. Hence, PNG is safer than LPG for your family.

Companies to Benefit?

Several gas companies in India serve gas to homes. As the government is targeting to give more importance to Piped Natural Gas in the upcoming years, the following companies are the major key players in the market to benefit: GAIL (Gas Authority of India Limited), Gujarat Gas, Indraprastha Gas Limited, Mahanagar Gas Limited, Adani Gas Limited are the companies which are providing PNG to Households as an alternative to LPG Cylinders.

Conclusions:

The recent manifesto by the government aiming to provide cheap piped gas to households and the target raise of 15% for natural gas in the energy basket by 2030 would be beneficial for the above-mentioned piped natural companies.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.