PNGRB panel for unlocking domestic natural gas market

New Delhi: A high-level expert committee set up by the Petroleum and Natural Gas Regulatory Board (PNGRB) has called for sweeping structural reforms to create a free, competitive natural gas market in India, arguing that market-driven pricing and open access are essential for the country’s clean energy transition. In its report, Vision 2040-Natural Gas Infrastructure in India, the panel led by former PNGRB chairperson DK Sarraf said a liberalised gas market would enhance transparency, spur investment, improve resource allocation and deepen liquidity. A competitive system, it said, would remove current market distortions and attract new players across exploration, pipelines, LNG terminals and city gas distribution.

Natural gas, extracted from underground and offshore reservoirs, is used to generate power, produce fertiliser, turned into CNG to power vehicles, piped to household kitchens for cooking and serve as feedstock across several industries. Natural gas seen as a key transition fuel as India shifts from fossil fuels to renewables, its role in the energy mix is set to expand.

The government aims to raise the share of natural gas in the country’s energy basket to 15 per cent by 2030, up from the current 6.2 per cent. India’s present pricing framework - an assortment of government-regulated gas, market-linked domestic production and LNG imports - creates inefficiencies, the committee noted.