Explained: How expensive is it to deliver PNG to homes, what is the cost of one connection?
Amid the Iran war, concerns about LPG supplies in India have increased, bringing PNG into the spotlight. The government is also encouraging consumers to obtain PNG connections. Let's explore the cost of laying a PNG pipeline and the cost of a connection.
The US-Israel-Iran war has affected LPG supplies in India. The government is taking all possible steps to meet the needs of the people in the country. Recently, the government requested commercial LPG consumers in major cities and urban areas to switch to PNG.
Previously, the Indian government wrote to all states requesting that all pending pipeline permissions be approved. New applications should be approved within 24 hours.
Why is the government placing so much trust in PNG amid the LPG shortage? How different is PNG from LPG? Are there sufficient PNG reserves in India? How beneficial is it for ordinary consumers? Also, learn how much it costs to lay a PNG pipeline and obtain a connection.
What is the difference between LPG and PNG?
LPG is a liquefied petroleum gas that comes in cylinders and contains propane or butane. PNG is piped natural gas, supplied to homes through pipelines. It primarily consists of methane.
LPG is heavier, and there's a concern about running out of cylinders. It also carries a higher risk of fire. PNG, on the other hand, is lighter and safer. In the event of a leak, it evaporates immediately. Furthermore, its supply remains constant.
Is there enough PNG stock in India?
India imports 60 percent of its LPG needs, 90 percent of which comes through the Strait of Hormuz. India's PNG supply, meanwhile, depends primarily on two sources: domestic production and natural gas imports.
Approximately half of the country's demand is met from land and offshore gas reserves, where state-owned companies like ONGC and private companies like Reliance Industries produce gas.
The remaining demand is met through the import of LNG, which is imported from abroad, reconverted, and then delivered to consumers through pipelines. Currently, the government maintains that the country has sufficient PNG and LPG reserves to meet domestic needs.
Why is the government insisting on shifting to PNG?
The Indian government is encouraging consumers to switch to PNG because it is safer, more convenient, and more environmentally friendly than LPG. PNG is lighter than air, so leaks dissipate quickly, reducing the risk.
It offers a continuous pipeline supply, eliminating the risk of cylinder shortages. Furthermore, metered bills are used to control costs.
PNG is less polluting, and the government aims to strengthen the country's energy security by expanding its use. Furthermore, pipeline supply also eliminates the risk of black marketing.