India's Gas Distribution: Driving Change with CNG Growth

Crisil Intelligence's recent report uncovers the pivotal role of India's city gas distribution (CGD) sector in the country's energy transition, spotlighting compressed natural gas (CNG) as a primary growth driver. The report attributes this growth to robust government support, rising urban mobility needs, and expanding infrastructure.

The industry is eyeing a major boost with plans for over 18,000 CNG stations and licensing rounds unlocking 12 crore households. Crisil's report, 'City Gas Pulse', suggests the next wave of growth will target new regions, inspired by innovative gas allocation, private investments, and active vehicle conversion trends.

Despite increasing competition and the end of exclusivity periods, CNG's integration into India's energy strategy is evident as the country aims to achieve a 15 percent share of natural gas in its primary energy mix. Regional infrastructure development remains key to broadening gas access, even as the market shifts focus to electric vehicles.

CNG's competitive edge persists amidst evolving allocation and pricing concerns, maintaining its relevance as India navigates its reliance on fossil fuels. This comes against the backdrop of India's commitment to the ambitious 'Panchamrit' pledge made at COP26, targeting a significant reduction in emissions by 2030 and aiming for net-zero emissions by 2070.

(With inputs from agencies.)