India eyes 126 million PNG connections, 18,000 CNG stations by 2034

Major push in gas infra expansion being achieved through state policies, says PNGRB

The Petroleum and Natural Gas Regulatory Board (PNGRB) has ramped up efforts to nudge states on new initiatives and policies aimed at meeting the national target of 126.3 million PNG connections and 18,336 CNG stations by 2034, the downstream petroleum regulator said on Wednesday.

 

The idea is to significantly expand the reach of natural gas infrastructure in the country.

 

In order to sort out policy and operational issues of the CGD sector, PNGRB leadership held several meetings with chief ministers and chief secretaries of Assam, Maharashtra, Andhra Pradesh, Uttarakhand, Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Bihar, Tamil Nadu, Rajasthan, Jammu & Kashmir, Andaman & Nicobar Island, among others.

 

 

“The discussions emphasised the importance of rationalising VAT on domestic natural gas and compressed natural gas (CNG) to make clean fuels more economically viable for consumers. States were encouraged to formulate and implement comprehensive state CGD policies to streamline approvals and enhance infrastructure development. Necessary assistance was also offered to states,” PNGRB said.

 

As of July 2025, 11 states have notified CGD policies including Punjab, Uttar Pradesh, West Bengal, Assam, Tripura, Tamil Nadu, Puducherry, Karnataka, Madhya Pradesh, Bihar, and Rajasthan.

 

The regulator has assigned a minimum target of 78.5 million out of the total 126.3 million PNG connections, and 10,131 out of 18,336 CNG stations to be completed by companies in these states by 2034.

 

“The rationalisation of VAT and the implementation of effective CGD policies across states have promoted the adoption of CNG vehicles, with the number of vehicles rising from 5861,000 in March 2023 to 8195,000 by March 2025. A growth of nearly 25 per cent in CNG vehicle registrations was recorded in 2024-25 compared to 2023-24. This translated into an increase of around 21 per cent in gas sales in 2024-25, along with the addition of approximately 1,206 CNG stations across the country,” PNGRB said.

 

Similarly, around 21,00,000 new domestic PNG connections were added in 2024-25, contributing to an 11 per cent increase in gas sales across the country.