New gas pipeline order: PNG mandatory for notified consumers, LPG supply may stop after 3 months

Amid a deepening LPG supply shortage triggered by the ongoing conflict in West Asia, the Centre on Tuesday notified the Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026, aimed at accelerating pipeline infrastructure development across the country and ensuring uninterrupted fuel supply to households and industries.

The order has been issued under the provisions of the Essential Commodities Act, 1955, giving the government wider powers to ensure the availability and smooth distribution of critical energy resources. Under the new framework, entities authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB) or the central government will be permitted to lay, operate, maintain and expand pipelines across public, private and residential areas under a uniform regulatory structure.

Push for PNG connections

The order aims to accelerate pipeline and city gas distribution (CGD) network expansion, improve last-mile connectivity of piped natural gas (PNG) and ensure operational clarity for both operators and consumers. Housing societies, resident welfare associations (RWAs) and other entities controlling access to residential premises must provide right of way within three working days of receiving an application from an authorised entity.

If access is denied or delayed, LPG supply to the concerned households may be discontinued after three months. Similarly, if a household fails to apply for a PNG connection despite being notified, LPG supply to that address can be stopped after three months, unless piped gas is technically not feasible.

Transparent framework, time-bound approvals

The reform introduces a transparent and predictable regulatory framework for laying, operating and expanding pipeline infrastructure, with standardized procedures and defined timelines to reduce ambiguity. All public authorities—including central and state government departments, urban local bodies and municipal corporations—must grant permissions within fixed timelines, failing which approvals will be treated as deemed clearances.

The timelines range from 10 days for smaller city gas distribution (CGD) networks to up to 60 working days for large transmission pipelines. The order creates a single, harmonised approval framework across jurisdictions, removing fragmentation in permissions and reducing administrative delays. It also bars public authorities from imposing arbitrary taxes, levies or charges, and introduces standardised fees for right of way, road restoration and land use, with options for “dig and pay” or “dig and restore”.

Ease of doing business, fewer disputes

The policy is expected to provide a major boost to ease of doing business in the oil and gas sector by simplifying compliance requirements and clearly defining compensation rules. In non-public areas, pipeline developers must first seek agreement with landowners, but if no agreement is reached and no alternative route is available, the designated district authority can grant right of way after hearing objections.

Compensation will be determined using a fixed formula linked to the circle rate of land, reducing disputes and bringing uniformity in payments. The order also places accountability on authorised entities. If a developer fails to begin work within four months of receiving approval, penalties may be imposed and exclusivity in that area can be withdrawn.

Consumer safeguards, energy security focus

The order also includes consumer-centric provisions to ensure time-bound connections and a smooth transition from LPG to PNG, while also providing safeguards, dispute-resolution mechanisms and clear access rules to protect public interest and support energy security.

The PNGRB has been designated as the nodal agency to monitor implementation, track approvals and rejections, and ensure compliance by authorised entities. The government said the reform is aimed at strengthening India’s gas distribution network, improving energy security, and ensuring reliable fuel supply amid the ongoing supply disruptions.