In an endeavour to strengthen critical pipeline infrastructure, India is undertaking comprehensive initiatives and investments to develop and expand water, and oil and gas pipeline networks. In collaboration with municipal corporations and energy companies, the centre is implementing strategic measures to enhance the overall network coverage and ensure consistent supply. With this goal in place, considerable attention is being paid to expanding pipeline systems.
Government support, goals and programmes
In the water sector, the government has launched several flagship initiatives to revolutionise water infrastructure. The $50 billion Jal Jeevan Mission stands at the forefront, targeting household tap water connections for 190 million rural households by end 2024. Complementing this, the Namami Gange programme, one of the largest river rejuvenation initiatives, focuses on restoring the Ganga river’s ecological balance and will be replicated across six other rivers. The urban landscape is being transformed through AMRUT 2.0, which aims to achieve universal coverage and enhance water supply and sanitation services in urban areas. Additionally, as of June 2024, the central government is collaborating with state authorities to develop over 100 projects, worth $10 billion, focused on creating new water storage and diversion infrastructure.
The oil and gas sector is witnessing parallel transformation through strategic initiatives aimed at nation wide access to gas. The Petroleum and Natural Gas Regulatory Board (PNGRB) has significantly expanded its city gas distribution (CGD) network coverage from 34 to 307 geographical areas through state-level collaborations. The CGD segment has seen remarkable growth, with national gas consumption more than doubling from 86 mmscmd in 2007 to 189 mmscmd at present, primarily driven by industrial and commercial users utilising regasified liquefied natural gas (LNG). The CNG infrastructure has shown equally impressive expansion, with stations increasing from 280 in 2006 to 7,000 in 2024.
Further, to ensure a well-connected gas pipeline, the government has envisaged an interconnected National Gas Grid to ensure adequate availability and equitable distribution of natural gas across the country. These coordinated efforts are aimed at enhancing the quality of life, while supporting economic growth.
Growth-oriented developments in water infrastructure
Some states are implementing innovative water infrastructure projects and adopting advanced technologies to enhance water distribution efficiency, demonstrating significant progress in modernising their pipeline networks and water management systems. For example, Gujarat is implementing a pilot project for bulk flowmeters and quality analysers across the state. This will enable them to monitor the water supply pipeline infrastructure in real time through a comprehensive dashboard displaying key performance indicators and spatial maps. Additionally, they are taking measures such as prioritising preventive maintenance and shifting to performance-based payment incentives.
Similarly, Odisha has successfully transformed its water supply system in Puri, transitioning from intermittent distribution to a 24×7 drink-from-tap model, setting a benchmark for other cities.
Many other cities are also undertaking expansion projects. The Nagpur Municipal Corporation is investing around Rs 0.38 billion to construct a 5.48 km pipeline under Amrut Yojana 1.0, which will enhance water supply to multiple areas including Hill Top, Sanjay Nagar and Sudam Nagari. Bengaluru is innovating with dedicated pipelines for treated water distribution to construction sites, while Pimpri-Chinchwad is developing new water sources to meet its projected 2041 water demands. The Andra-Bhama Askhed project, a key component of this strategy, has already delivered 100 million litres per day (mld) of water to the city in its first phase. The second phase, which is expected to be completed by June 2025, will provide an additional 168 mld to the city’s water supply.
Interstate collaborations are also strengthening water security. In February 2024, Haryana and Rajasthan signed an agreement for underground pipeline transfer of the Yamuna water and its subsequent utilisation in areas such as Jhunjhunu and Churu. In Karnataka, the recent commissioning of Cauvery Stage V has brought relief to beneficiaries, with Cauvery Stage VI aiming to supply 2,225 mld to Bengaluru. Additionally, the proposed Rs 90 billion Mekedatu reservoir project is designed to optimise monsoon water storage for use during dry periods, showcasing long-term planning for water security.
Expansion initiatives for oil and gas networks
India is rapidly moving towards the implementation of its ambitious target of almost doubling its gas pipeline network in the years to come, which will be achieved by a planned construction of several major gas pipelines and expansion of the already existing infrastructure. Moreover, major gasification efforts are underway in the eastern parts of the country.
The oil and gas sector in India is expanding at a fast pace, owing to the significant increase in energy demand. The total operational and partially commissioned natural gas pipelines in the country spans around 23,000 km and the average capacity utilisation of these pipelines is less than 50 per cent.
The current operational capacity of LNG terminals stands at about 48 million metric tonnes per annum, predominantly concentrated in the western region of the country. As per the latest data, the average capacity utilisation of these terminals stands at around 45 per cent, with only the Dahej terminal being utilised at 104 per cent. However, despite the LNG market being constrained in the recent past, India has maintained its position as the world’s fourth largest buyer of LNG after Japan, South Korea and China.
The eastern region, however, faces significant infrastructure gaps in its gas network, prompting further development. India’s most ambitious LNG project, the Urja Ganga gas pipeline being developed by GAIL India, has been delayed by nine months and will now be completed by March 2025. The project spans around 3,306 km and costs around Rs 129 billion. It is designed to connect the eastern part of India with the National Gas Grid, ensuring the availability of natural gas in Uttar Pradesh, Bihar, Jharkhand, Odisha and West Bengal.
Additionally, through the Barauni-Guwahati pipeline, the Jagdishpur-Haldia-Bokaro-Dhamra natural gas pipeline will connect to Indradhanush Gas Grid Limited’s Northeast grid, which is under construction. Once completed, it will have an overall length of around 3,500 km and will serve eight North-eastern states, including Assam, Sikkim, Mizoram, Manipur, Arunachal Pradesh, Tripura, Nagaland and Meghalaya, in phases.
To enhance the eastern access and connectivity, the government estimates investments of around Rs 410 billion ($4.95 billion) for constructing natural gas pipeline infrastructure across the North-eastern states and the northern territories of Kashmir and Ladakh. Once completed, this will serve a dual purpose. Primarily, it will enhance the region’s connectivity and energy access. Additionally, it will optimise the utilisation of domestically produced gas from local sources, ensuring more efficient resource management.
Key oil and gas players have already begun establishing their presence in the region. Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) have secured licences to develop CGD networks in separate North-eastern states. Furthermore, Oil India Limited has obtained licences for CGD development in two areas through strategic partnerships with both BPCL and HPCL.
In sum
The acceleration of gas pipeline infrastructure development is imperative for meeting the growing demand and ensuring equitable distribution of cross-country pipeline networks and LNG terminals. Government initiatives, including viability gap funding for pipelines, streamlined clearances and asset monetisation, are expected to catalyse further growth. Given the capital-intensive nature of these projects, increased participation from private operators and international investors through 100 per cent foreign direct investment is crucial.
Regarding water infrastructure, going forward, the integration of digital technologies will remain crucial for enhanced network monitoring, operational efficiency and data-driven decision-making. This includes implementing real-time flow management systems, water quality monitoring and pressure regulation mechanisms connected to centralised management systems to optimise resource distribution and maintenance.
Overall, strategic collaboration between government agencies and private enterprises can accelerate pipeline infrastructure development by leveraging complementary strengths and fostering innovation.
Harman Mangat