By Akhil Mehrotra, MD; and Samikhya Borah, Head, Corporate Affairs & Communication, Pipeline Infrastructure Limited
On a map of India, pipelines are just thin lines. On the ground, they are steel and polyethylene arteries, carrying the lifeblood of an economy in transition. India’s energy sector is in the midst of a defining transformation. The government’s vision to raise the share of natural gas in the country’s primary energy mix from the current 6 per cent to 15 per cent by 2030 marks a decisive shift towards cleaner fuels, improved efficiency and greater alignment with climate commitments. Natural gas, as a transition fuel, offers multiple benefits. It is cleaner than coal, more effective than oil and flexible enough to support the integration of renewable energy.
Yet, the success of this vision depends on a critical factor: the ability to move natural gas from the source, both domestic and imported, to consumption centres efficiently, reliably and safely. In this endeavour, pipeline infrastructure is not merely an enabler; it is the backbone of the gas-based economy that India seeks to build.
Natural gas: A strategic imperative for India
The case for a gas-based economy is compelling. For industry, natural gas lowers the carbon footprint while enhancing competitiveness. For urban areas, it offers cleaner cooking fuel and transportation options, reducing local air pollution. For the power sector, it provides a flexible, quick-start generation option that can complement the variability of renewables such as solar and wind.
Unlike many alternative fuels, natural gas can leverage existing and emerging infrastructure, making the transition cost-effective and scalable. However, realising these benefits requires an integrated network of pipelines that can connect supply sources — onshore and offshore production fields and LNG terminals — with demand nodes across industrial corridors, cities and regions.
Expanding national gas grid
India’s gas transmission network has grown substantially in recent years. From roughly 14,000 km in 2018, the operational length today exceeds 24,900 km, with an additional 10,800 km under construction. Once completed, this will create an integrated national gas grid spanning over 33,000 km, linking gas-rich regions and import terminals to key consumption markets.
Pipeline Infrastructure Limited (PIL) is recognised as one of India’s independent gas pipeline operators. The company owns and operates a 48-inch diameter cross-country natural gas pipeline, stretching approximately 1,480 km from Kakinada in Andhra Pradesh to Bharuch in Gujarat, incorporating essential spur lines and interconnections. Serving as a critical east-west energy corridor, this infrastructure facilitates the dependable, safe and efficient transportation of natural gas, connecting production centres, LNG terminals and demand hubs, and thereby contributing significantly to India’s progression toward a gas-based economy.
Importance of pipelines in a gas-based economy
- Efficiency and scale: Pipelines are the most cost-effective way of transporting large volumes of gas over long distances, with minimal transmission losses and without the logistical and environmental challenges associated with road transport.
- Reliability and safety: Equipped with advanced monitoring, control systems and automated shut-off mechanisms, modern pipelines provide a secure and continuous supply of fuel.
- Ease of access – Fuel delivered to the doorstep: Pipelines provide convenient and efficient energy delivery by bringing natural gas directly to homes, industries and businesses. This removes the uncertainties in logistics and removes any storage requirement.
- Environmental benefits: By replacing coal and diesel in multiple sectors, pipeline-delivered natural gas significantly reduces greenhouse gas emissions and improves air quality.
- Economic competitiveness: Affordable and reliable gas supplies enable industries to lower production costs, attract investments and generate employment, thereby boosting regional economic development.
Recent trends and developments – One Nation, One Grid and Unified Tariffs
- Accelerated network expansion: Faster roll-out of both trunk and regional pipelines has been achieved through supportive policy measures, including the common carrier principle, allowing open access to infrastructure.
- The One Nation, One Grid vision: Supported by a unified tariff system, the One Nation, One Grid vision is standardising transmission charges nationwide. It is promoting fair access to natural gas for all consumers, giving access to sources far from the consumption centres, encouraging investment in underserved regions and helping ensure more even distribution of gas.
- Private sector participation: Public–private partnerships and private investment have been instrumental in enhancing capacity, increasing operational efficiency and incorporating international best practices in both construction and management.
- Digitalisation of operations: The adoption of IoT-enabled sensors, SCADA systems and predictive maintenance tools has enhanced operational reliability and reduced downtime.
Key challenges
- Risk–reward rebalancing: The current revenue model places significant volume risk on developers, affecting both financial viability and new build. A more balanced framework is essential to sustain investor confidence.
- Land acquisition and right of way: Obtaining the necessary clearances and permissions is a lengthy procedure, which can result in delays in project implementation.
- Financing for regional pipelines: Securing financing for mid-sized projects presents significant challenges, largely due to perceived market risks. Furthermore, the absence of long-term contracts limits bankability, resulting in increased uncertainty for both developers and lenders.
- Availability of semi-skilled workforce: With the rapid expansion of city gas networks the requirement for semi-skilled workers has increased exponentially. The training institutes have not been able to cope with this demand. With the constant churn in the worker pool, there is a need for continuous training of new sets of workers. This is critical for the hydrocarbon industry.
- Pipeline integrity and safety: Settlements and habitats often expand and come close to pipeline routes, increasing integrity risk. Stronger enforcement of safety corridors, use of technologies such as drones and pipeline intrusion detection systems, and public awareness are critical for maintaining integrity.
- Regional disparities: Pipeline density varies widely, with the southern and eastern states still being underserved relative to the western and northern regions.
Addressing these bottlenecks will require coordinated action between the central and state governments, regulators, financiers and industry players.
Opportunities to accelerate the transition
- Connecting the pipeline grid to terminals: As LNG imports grow, pipelines connecting regasification terminals to inland markets will be critical for supply diversification and security.
- Hydrogen and renewable gas integration: Designing new pipelines to be hydrogen-ready and integrating compressed biogas into the network can future-proof infrastructure and contribute to the decarbonisation goals.
- Cross-border connectivity: Regional pipeline projects can diversify supply sources and open up new avenues for energy trade.
- Advanced technologies: The continued deployment of AI-based leak detection, drone-assisted inspections and real-time data analytics will enhance safety and efficiency.
A collaborative approach
The expansion of pipeline infrastructure is not just an engineering challenge; it is a nation-building effort that requires alignment across multiple stakeholders.
- Policy stability: Predictable tariff frameworks, transparent regulations and timely approvals encourage investment and long-term planning.
- Innovative financing models: Instruments such as viability gap funding, infrastructure bonds and ESG-linked loans can help mobilise capital for priority projects.
- Community engagement: Building trust and securing local support through transparent communication and community development initiatives ensure smoother project execution.
- Resolving demand-side issues: To establish natural gas as a central component of India’s energy strategy, it is essential to concentrate on unlocking its full potential by prioritising the following three key customer segments.
- Gas to power: Leveraging gas for quick-start power plants that can complement renewable energy variability.
- LNG for long-haul trucking: Promoting LNG as a cost-effective and cleaner alternative for freight and transport.
- Natural gas for MSMEs: Facilitating cost-effective access to natural gas for small and medium-sized enterprises to enhance their competitiveness and support inclusive economic growth.
The above will help resolve the volume risk issue to a large extent, thus attracting more investments.
Conclusion: Building the arteries for a cleaner energy future
Pipeline infrastructure is the lifeline of India’s gas-based economy vision. Every kilometre laid extends the reach of cleaner, more affordable energy — powering industries, improving air quality and supporting sustainable growth.
As India advances towards its 2030 goal, the role of pipelines will only grow in strategic importance. At PIL, we are proud to contribute to this transformation — delivering safe, reliable and future-ready gas transmission solutions that will serve the nation for decades to come.
In building these energy arteries, we are not just transporting fuel, we are carrying forward the promise of a cleaner, more secure and more prosperous India. The progress we have witnessed over the past year underscores that pipeline infrastructure is the bedrock of India’s gas-based economy transition. It is through these arteries — efficient, safe and scalable — that cleaner energy reaches industries, businesses, homes and communities.
For all stakeholders — the government, industry players, financiers and communities alike – the way forward is clear: build the pipelines that carry not just gas, but the promise of a cleaner, modern and prosperous India.
