City gas distribution (CGD) networks consist of extensive interconnected underground pipelines that deliver piped natural gas (PNG) and compressed natural gas (CNG) to domestic, commercial and industrial consumers. They support cleaner energy use and reduce reliance on traditional fossil fuels such as coal and oil. The Petroleum and Natural Gas Regulatory Board (PNGRB) governs the sector, granting exclusive rights to entities for developing and operating CGD networks across designated geographical areas (GAs). Over the years, the CGD network has undergone rapid expansion. As of September 2025, the number of domestic PNG connections stood at 15,560,920, CNG stations at 8,357 and the pipeline network extended to 299,429 inch-km. The government aims to raise the share of natural gas in the energy mix from about 7 per cent to 15 per cent by 2030 to support environmental sustainability and energy security.
Digitalisation plays a transformative role in enhancing CGD operations by integrating advanced technologies such as supervisory control and data acquisition (SCADA) systems, internet of things (IoT) sensors and smart meters for real-time monitoring, leak detection, efficient supply management and transparent billing. These digital tools improve operational efficiency, safety and customer experience by enabling remote control, data analytics and automation. Public and private players are rapidly adopting digital solutions to future-proof India’s CGD networks, positioning them as key enablers of a cleaner and smarter urban energy ecosystem aligned with national energy and sustainability goals.
IndianOil-Adani Gas Private Limited (IOAGPL), a dedicated CGD company, operates in 10 states and 19 GAs, covering 33 districts. Operations are currently under way in 32 districts, with Shimla expected to be added soon. The company serves both CNG and PNG (domestic, industrial, and commercial) segments. IOAGPL’s operations are fully interconnected through pipelines and it is well positioned to adopt and integrate digital transformation initiatives across its operations.
First steps
In its early days, the oil and gas sector relied on manual systems and practices. Today, the same professionals who once relied on paper records and mechanical processes are now leading conversations on digitalisation. The pioneers of CGD in India were the visionaries behind Gujarat Gas and other early ventures. They took bold steps to establish gas distribution systems across regions such as Surat, Kaleshwar, Bharuch and, earlier, in locations such as Sivasagar in Assam, and Vadodara (then Baroda).
These first-generation professionals were more than engineers; they were innovators with a deep understanding of gas systems. Supported by forward-thinking businesses and state governments, and local gas production in Gujarat, they ventured into an unexplored industry. Future generations learned from them and are carrying those lessons forward.
Digitalisation: Not the future, but the present
Today, the world operates in a completely digital, automated and data-centric environment. Most processes and functions that are carried out on a daily basis are driven by digital systems. This has gradually evolved from a matter of choice to a reality. Digitalisation is already embedded in everyday operations. The sooner this is recognised, the better prepared organisations will be to leverage its full potential.
Building a digital framework for CGD
Digitalisation in the CGD sector must be purposeful and deeply integrated into every aspect of operations. IOAGPL has taken several digital initiatives and incorporated them into its core processes. The company’s digital strategy is built around four foundational pillars that define its approach: convenience for both customers and operational teams; speed to enable faster responses and real-time maintenance; control through greater visibility and data-driven decision-making; and finally, security and compliance to ensure data integrity, safety and adherence to all regulatory standards. These principles shape the company’s digital initiatives. For example, in early years, gas data would only be available 8-12 hours later, or even take as long as 24 hours. This delay limited control and response to issues such as leaks or discrepancies. With automation, real-time information is now available, improving both safety and efficiency.
IOAGPL’s automation journey includes the integration of SCADA systems for data acquisition, GIS mapping, domestic project management and digital monitoring, maintenance and customer registration. While the gas business remains largely physical, with pipelines to weld and gas to flow, the layers of digital monitoring and analysis have revolutionised operations.
All GAs and CNG stations are connected through SCADA. Further, the integration of district regulating stations and industrial meters is under way. Internal operations such as billing, HR recruitment, vendor bill tracking, incident management and document control have all been digitalised. This ensures that no part of the workflow is lost or delayed.
Digitalisation also extends to inventory management and customer engagement. QR code-based billing, self-meter readings, automated invoices and dashboards for real-time monitoring are now part of the system. While these are not entirely new to the industry, their value lies in consistent execution and incremental improvement. With inventory tracking systems, dashboards are getting smarter and there is a need to build decision-making metrics around these dashboards.
The adoption of smart meters has emerged as the next step in this evolution. However, challenges remain. For smart meters to be truly “smart”, they must have features such as auto shut-off for non-payment or safety alerts. Automated billing and SCADA-GIS integration are advancing, but still there is a need to demonstrate the financial justification for these technologies. In a cost-sensitive industry, digital investments must lead to measurable benefits.
Balancing innovation and operational reality
Despite notable progress, several challenges continue to shape the CGD industry’s digital journey. The business remains inherently manual and the workforce is predominantly composed of mechanical, civil, or production engineers with limited IT engineers.
One of the foremost challenges is cost sensitivity and operational expenditure constraints. As an opex-driven sector, any digital solution must clearly demonstrate financial value. For example, manual meter readings are inexpensive, and transitioning to smart meters involves significantly higher costs, making large-scale replacement financially unviable without clear operational savings or external support. Unless the cost-benefit equation is balanced, digital adoption will remain slow.
Another major obstacle lies in infrastructure and connectivity gaps. Digital solutions that perform well in metropolitan areas often falter in smaller towns due to weak network coverage or limited digital literacy. In regions such as Jaunpur or Ghazipur, where IOAGPL operates, inconsistent mobile connectivity and limited familiarity with digital tools among vendors and customers create serious hurdles. Even when data is collected, companies face the twin challenge of data overload and underutilisation. Given that household gas consumption is relatively low compared to sectors such as electricity or oil, the impact of advanced analytics such as AI, ML and predictive maintenance remains limited.
The erosion of the human-centric nature of service, mainly among older customers, also raises concerns. Many customers continue to prefer direct interaction with service representatives over automated systems, making it essential to maintain a balance between technological convenience and personal engagement. Vendor lock-in and outdated technology further complicate matters as regular updates, licence renewals and maintenance introduce hidden costs and long-term dependencies that increase operating expenses.
Security, compliance and privacy have also emerged as critical concerns. With millions of customer data points being generated, ensuring cybersecurity and data integrity has become not just a regulatory requirement but a strategic necessity. Finally, technological constraints in smart metering present a unique challenge. Unlike electricity meters that draw power directly from the grid, gas meters require external batteries, increasing both cost and maintenance needs. High battery replacement expenses and low household gas consumption make the large-scale deployment of smart meters financially impractical across most regions.
Conclusion
While challenges persist in the sector, progress continues. Across CGD companies, smart meter pilot projects are being implemented, often at the company’s own cost. IOAGPL, for instance, is deploying smart meters in rural and difficult-to-access areas. In the electricity sector, the government’s subsidy model for smart meters accelerated adoption by offsetting costs through reduced theft and improved billing efficiency. However, the gas sector differs significantly. Gas theft is minimal, consumption per household is small, and operational risks are limited. Therefore, a direct replication of the electricity sector model may not work.
Nevertheless, with time, volume and innovation, costs can come down. Collaboration among the government, industry and technology providers can accelerate this process. The focus must remain on using technology to solve specific operational problems rather than adopting it for its own sake. IOAGPL is currently in a phase of data accumulation and digital experimentation. Most CGD companies have digitised data collection but are still developing frameworks for analysis and decision-making. The role of digital tools will expand from administrative convenience to strategic intelligence.
Digitalisation is not a goal for tomorrow; it is today’s reality. However, for it to truly succeed in industries such as CGD, it must balance innovation with practicality, automation with affordability and technology with the human touch. Digitalisation in CGD is not about replacing people with machines; it is about empowering organisations with information, speed and precision. With digital tools, the process becomes smarter, safer and more efficient, ensuring that the transition from the first generation of gas professionals to a digital future remains connected, sustainable and meaningful.
Based on a presentation by a representative from IOAGPL at a recent Indian Infrastructure conference
