City Gas Distributors to Gain Extra LPG Replacement Gas

Under the latest incentive framework, city gas distribution firms that exceed the prescribed connection targets in any geographic zone will receive a supplemental allotment of 200 SCM of APM gas for each surplus connection. This additional gas is earmarked to replace the higher‑priced liquefied natural gas (LNG) that distributors currently procure for their compressed natural gas (CNG) transport operations.

By substituting LNG with cheaper APM gas, the policy aims to lower the overall cost of gas sourcing for CGD companies. The expected reduction in operational expenses should improve the financial case for expanding domestic PNG services, allowing firms to recover their investment in roughly three years instead of the earlier ten‑year horizon.

The two‑phase rollout, spanning six months, aligns the commercial interests of CGD operators with the broader national goal of delivering clean, affordable energy to more households.