Fuelling Growth: Pipeline infrastructure expands under flagship programmes

Over the past decade, India has built an oil and gas artery system that is transforming the way energy moves across the nation. The network ranges from imported crude oil at coastal terminals to liquefied pet­roleum gas (LPG) in household kitchens and city networks delivering piped gas to millions of consumers. The focus is now on building an integrated, digitally enabled and regionally balanced infrastructure that can power industries, cities and households.

Status of the current network

As of June 2025, India’s authorised natural gas pipeline network stretched across 34,233 km, including 32,661 km of common carrier pipelines, 792 km of tie-in connectivity and 780 km of dedicated pipelines. Natural gas pipelines spanning 25,429 km are operational, while 10,459 km are under construction. Flagship initiatives like the Pra­dhan Mantri Urja Ganga project and the North East Gas Grid (NEGG) remain cornerstones of this expansion.

India had 13,652 km of authorised pet­roleum and petroleum product pipelines as of June 2025. The operational length stood at 9,301 km and 4,263.5 km was under construction. Moreover, as of April 1, 2025, the crude pipeline network stood at 10,445 km with a capacity of 153.1 million metric tonnes per annum. In terms of length, Indian Oil Corporation Limited (IOCL) accounted for over 50 per cent (5,324 km) of this network, while in terms of capacity, the Oil and Natural Gas Corporation (ONGC) leads with 39.58 per cent, followed by IOCL at 35.14 per cent. As of September 1, 2025, India’s product pipeline network stood at 24,130 km, with the top three companies – IOCL, Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petrol­eum Corporation Limited (BPCL) – collectively accounting for over 80 per cent of the total product pipeline network.

India has achieved remarkable expansion milestones under the city gas distribution segment as well. As of August 31, 2025, piped natural gas (PNG) domestic connections increased to 15,412,304 against a pro-rata target of 34,886,959 and a Minimum Work Programme (MWP) target of 126,355,818 connections. Further, pipeline infrastructure has increased to 297,268 inch-km against a pro-rata target of 372,724 inch-km.

India’s extensive pipeline network forms the backbone of the country’s energy consumption and production. Key crude oil pipelines include the Mundra-Panipat pipeline, connecting the Gujarat coast to the refinery in Haryana, which is currently undergoing expansion; the Paradip-Numaligarh pipeline, linking Odisha to Assam and supplying the Numaligarh refinery; and the Salaya-Mathura pipeline, operated by IOCL, spanning Gujarat to Uttar Pradesh.

Policy backbone and government push

The strong momentum in India’s pipeline expansion is driven by policies from the Ministry of Petroleum and Natural Gas and the Petroleum and Natural Gas Regulatory Board (PNGRB).

A landmark reform shaping India’s gas transmission landscape is the introduction of the Unified Tariff Regime, effective June 1, 2024, under the revised PNGRB Natural Gas Pipeline Tariff Regulations. The regulation introduced a standardised tariff of Rs 80.97 per million British thermal units based on a three-zone distance model, replacing the earlier fragmented structure. The objective was to make gas transmission costs predictable, reduce regional price disparities and stimulate demand. Building on this, in March 2025, the PNGRB proposed key amendments to sharpen the framework. This included a reduction of tariff zones from three to two, introduction of a nationwide Zone 1 rate for all city gas distribution (CGD) entities supplying domestic PNG and compressed natural gas (CNG), mandatory long-term contracting requiring pipeline operators to procure at least 75 per cent of system-use gas under contracts of not less than three years, and the creation of a pipeline development reserve to fund expansion and maintenance.

Further, in July 2025, the PNGRB mandated uniform PNG pricing for all domestic households under the CGD framework, eliminating differential rates based on consum­p­tion tiers.

Growing pipeline infrastructure for fuel transportation

Petroleum and LPG pipelines are also expanding rapidly to support increasing fuel demand and reduce logistics costs. The Irugur-Devangonthi petroleum and petroleum product pipeline is operated by BPCL, while the Kochi-­Coimbatore-Erode-Salem LPG pipeline is managed by a BPCL-led consortium. HPCL operates the Rewari-Kanpur and Awa-Salawas petroleum and petroleum product pipelines, along with the Mangaluru-Hassan-Mysore-­Sollur LPG pipeline.

To meet India’s growing LPG demand of 32 million metric tonnes (mmt), of which only 2.5 mmt currently moves via pipelines, the PNGRB initiated public consultations for nine new LPG pipelines totalling 3,470 km in December 2024. These include routes such as Cherlapally-Nagpur, Shikarpur-Hubli-Goa, Mumbai-Aurangabad-Jalgaon, Paradip-­Raipur, Jalandhar-Jammu, Ennore-Puducherry, Gwalior-Haldwani and CPCL Cauvery Basin Refinery-Trichy-Madurai. Additionally, spur lines have also been proposed. Together, they will connect 60 additional bottling plants, raising pipeline connectivity to nearly 68 per cent of India’s bottling capacity and reducing road transport, logistics costs and emissions.

Another major development is the 2,805 km Kandla-Gorakhpur LPG pipeline, conceived as the world’s longest LPG pipeline to date. The project spans Gujarat (1,076 km), Madhya Pradesh (621 km) and Uttar Pradesh (1,108 km), and is being implemented by IHB Limited, a joint venture of IOCL, BPCL and HPCL. The project is scheduled for completion by December 31, 2025. It will transport LPG and cover the cities in Madhya Pradesh, Gujarat and Uttar Pradesh, thereby reducing dependence on road and rail logistics and cutting emissions significantly.

Building a unified and resilient gas pipeline network

India’s gas pipeline infrastructure is advancing rapidly, with major projects nearing completion. As of March 2025, India’s national gas grid includes 20 interconnected networks, operated by IOCL, Oil and Natural Gas Corpor­ation Limited (ONGC), GAIL (India) Limited, Pipeline Infrastructure Limited, Gujarat State Petronet Limited, Gujarat Gas Limited, Reliance Gas Pipelines Limited, GSPL India Gasnet Limited, and GSPL India Transco Limited, accounting for nearly 92 per cent of the total gas infrastructure. The government aims to expand the national gas grid to about 35,000 km.

As of April 2025, GAIL (India) Limited has completed 97.6 per cent of the Jagdishpur-Haldia-Bokaro-Dhamra pipeline, also known as the Pradhan Mantri Urja Ganga pro­ject, with 96.6 per cent already operational. This milestone strengthens the connection of the eastern and north-eastern regions to the national gas grid. The integrated pipeline, including the Barauni-Guwahati section, spans an authorised 3,306 km across Uttar Pradesh, Bihar, Jharkhand, Odisha, West Bengal and Assam. So far, 3,227 km of pipeline has been laid, and 3,119 km commissioned, transporting 12.26 million standard cubic metres per day of natural gas to four fertiliser plants, two refineries (Barauni and Paradip), and 32 CGD networks in cities such as Varanasi, Patna, Ranchi, Jamshedpur, Bhubaneswar, Cuttack and Kolkata.

Work continues on the Durgapur-Haldia and Dhamra-Haldia sections, with completion timelines extended to December 2025 due to limited right-of-use availability. Upon completion, these sections will serve the Haldia refinery, city networks and industries along the route.

In parallel, the North-East Natural Gas Pipeline Grid, implemented by Indradhanush Gas Grid Limited, has achieved 85.35 per cent physical progress and is expected to be operational by 2026. The challenging Brahma­putra river crossing was successfully completed through horizontal directional drilling (HDD) between Baihata and Bishwanath, marking a key milestone in connecting the eight northeastern states. With an investment of Rs 100 billion, the project is being developed by a joint venture of IOCL, ONGC, GAIL, Oil India Limited and Numaligarh Refinery Limited, aimed at integrating the Northeast with the national gas grid for the first time.

As of September 2025, construction of the Mumbai-Nagpur-Jharsuguda pipeline is in its final phase. Out of the total 1,702 km, about 1,440 km is ready for gas-in. The entire corridor is targeted for progressive completion by December 2025.

Other key ongoing pipeline corridors incl­ude Barauni-Guwahati, Kochi-Koottanad-­Bengaluru- Mangaluru (Phase II), Bhatinda-­Jammu-Srinagar,

Mehsana-Bhatinda, Mallavaram-Bhopal-Bhilwara via Vijaipur, Kakinada-Vizag-Srikakulam, Nellore-Vizag-Kakinada, and the Ennore-Thiruvallur-Bengaluru-Puducherry-Nagapattinam-Madurai-Tuticorin and Jaigarh-Mangaluru pipelines.

Following the 12/12A CGD bidding round, the PNGRB has authorised the development of CGD networks in 307 geographical areas, covering nearly 100 per cent of mainland India. Under the MWP targets, authorised entities are expected to provide around 126 million PNG domestic connections and set up 18,336 CNG stations by 2034, including in Tier II and Tier III cities. As of May 31, 2025, over 8,000 CNG stations have been established.

Modernising pipeline infrastructure through advanced technologies

India’s oil and gas pipeline sector is entering a new phase of modernisation driven by technology, engineering and strong policy support. Digitalisation is at the core of this change. Pipeline operators now use supervisory control and data acquisition-based remote systems, artificial intelligence tools for leak detection, and geographic information system-linked monitoring for real-time control and safety. The PNGRB’s push for digital twin models is helping companies predict mainten­ance needs and improve efficiency. Drones and satellite monitoring are also making right-of-way (RoW) inspection and environmental compliance faster and safer. On the engineering front, innovations such as HDD for river crossings, automated valve systems and corrosion monitoring have made the network more reliable, especially in tough terrain.

The road ahead

As India targets a 15 per cent share of natural gas in its energy mix by 2030, this extensive web of oil and gas pipelines has emerged as the backbone of the country’s energy transition. However, challenges remain. Land acquisition delays, RoW disputes and environmental clearance issues continue to slow some projects, particularly in hilly and forest areas. Despite this, steady policy support and strong coordination among government bodies and companies have kept project execution on track. Between FY 2020 and FY 2025, about Rs 1,940 billion has been allocated to 163 pipeline projects nationwide, showing the government’s commitment to expanding this critical infrastructure.

Together, these developments are shaping a unified national gas grid that is smart and efficient, supporting cleaner fuels, balanced regional development and long-term energy security. Flagship projects like the NEGG, Pradhan Mantri Urja Ganga and the Kandla-Gorakhpur pipeline are key milestones in this journey.