New Delhi, March 25: The Government of India has issued a new policy directive to streamline the development of natural gas and petroleum pipeline infrastructure, in a move aimed at strengthening energy security and reducing dependence on imported fuels.
The order, titled Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026, was notified in the official gazette on March 24.
The directive comes against the backdrop of global supply concerns, including disruptions in the Strait of Hormuz and damage to liquefied natural gas (LNG) facilities in the Gulf region, which have heightened volatility in energy markets.
The framework seeks to address longstanding bottlenecks in pipeline expansion, including delays in multi-agency approvals, right-of-way issues, high local levies, and resistance from consumers and housing societies. It empowers authorised entities under the Petroleum Act 1934 to lay pipelines in a time-bound manner and streamline access to land and infrastructure.
A key objective of the policy is to increase the adoption of piped natural gas (PNG), particularly in areas already connected to gas networks. The government noted that many consumers in such regions continue to rely on LPG, creating inefficiencies in fuel distribution. By expanding PNG usage, LPG supplies can be redirected to underserved regions lacking pipeline connectivity.
The order applies to public entities, housing societies, and licensed operators, facilitating pipeline networks originating from transmission lines or LNG storage facilities. It is expected to support broader efforts to rebalance India’s fuel mix and reduce pressure on LPG imports.
With nearly one-fifth of global petroleum trade passing through the Strait of Hormuz, ongoing geopolitical tensions have exposed vulnerabilities in India’s energy supply chain. The government’s push to accelerate pipeline infrastructure is aimed at mitigating such risks by strengthening domestic distribution systems and enabling a more resilient energy ecosystem.
