India’s City Gas Distribution (CGD) market is poised for significant growth in the upcoming years, according to a recent report by ResearchAndMarkets.com. The report predicts a robust expansion in the market between 2024 and 2028, fueled by increasing government initiatives to promote the usage of natural gas as a cleaner alternative to liquefied petroleum gas (LPG) and conventional fuels.
CGD networks consist of underground pipelines that transport compressed natural gas (CNG) and piped natural gas (PNG) to various consumers, including residential, commercial, and industrial sectors. The market is primarily driven by the growth of PNG connections and the establishment of CNG stations throughout India.
One of the key findings of the report is that PNG connections and CNG stations dominate the CGD market in India. Currently, there are 72.47 lakh residential PNG connections and 2,713 CNG stations across the country. These numbers are expected to increase significantly as the Petroleum & Natural Gas Regulatory Board aims to raise the share of natural gas in the energy mix to 20% by 2025.
The increased availability of PNG connections and CNG stations is part of the government’s ambitious “Vision 2030” plan for natural gas infrastructure in India. The plan covers 215 districts across 19 states and one union territory, representing approximately 71% of the country’s total population.
The report also highlights the advantages of using natural gas as an alternative energy source. Natural gas has the potential to reduce life cycle greenhouse gas emissions and lower engine emissions, making it a cleaner and more environmentally friendly option. Additionally, natural gas vehicles (NGVs) are compliant with stringent emissions regulations, offering significant emission reduction benefits.
Key players in the India CGD market identified in the report include Gujarat Gas Limited, Indraprastha Gas Limited, GAIL Gas Limited, Mahanagar Gas Limited, Adani Gas Limited, Maharashtra Natural Gas Limited, Central U.P. Gas Limited, Bhagyanagar Gas Limited, Tripura Natural Gas Company Limited, and Sabarmati Gas Limited.
In conclusion, the India City Gas Distribution market is poised for strong growth in the coming years, driven by government initiatives, increasing PNG connections, and the establishment of CNG stations. The growth presents opportunities for both consumers and market players to embrace natural gas as a cleaner and more sustainable fuel option.
FAQ
1. What is City Gas Distribution (CGD)?
City Gas Distribution (CGD) refers to a network of underground natural gas pipelines used to transport compressed natural gas (CNG) and piped natural gas (PNG) to residential, commercial, and industrial consumers.
2. How is natural gas beneficial compared to other fuels?
Natural gas offers several advantages over conventional fuels. It is a cleaner and more environmentally friendly fuel option, reducing greenhouse gas emissions and engine emissions. Natural gas vehicles also comply with stringent emissions regulations, providing emission reduction benefits.
3. Which companies are major players in the India CGD market?
Key players in the India City Gas Distribution market include Gujarat Gas Limited, Indraprastha Gas Limited, GAIL Gas Limited, Mahanagar Gas Limited, Adani Gas Limited, Maharashtra Natural Gas Limited, Central U.P. Gas Limited, Bhagyanagar Gas Limited, Tripura Natural Gas Company Limited, and Sabarmati Gas Limited.
4. What is the government’s plan for natural gas infrastructure in India?
The Indian government aims to increase the share of natural gas in the energy mix to 20% by 2025 through its “Vision 2030” plan. This plan involves expanding the availability of PNG connections and establishing more CNG stations across the country.
5. How is the India CGD market expected to grow in the forecast period?
The India City Gas Distribution market is anticipated to experience robust growth between 2024 and 2028, driven by government initiatives, increasing PNG connections, and the establishment of CNG stations.