New PNG order: What it means for consumers and housing societies

The government on Tuesday night invoked its powers under the Essential Commodities Act, 1955, to expand access to piped natural gas (PNG) and reduce dependence on Liquefied Petroleum Gas (LPG), which is facing supply disruptions due to the ongoing West Asia crisis.

The Ministry of Petroleum and Natural Gas issued The Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026, aimed to remove hurdles in laying pipelines necessary to transport PNG to industry and households.

Why the order

The Centre stated that constraints on LPG and natural gas supply are expected to persist due to extensive damage and suspension of operations of liquefaction facilities in the Gulf region, which supply liquefied natural gas to India, as well as the continued blockage of the Strait of Hormuz. Such events require fuel diversification as a mitigation for long term energy security. The idea is to reduce household and industrial dependence on LPG.

What the order does

It will create a uniform framework to address issues that hinder the laying of pipelines including denial of land access, delays in approvals, delay in grant of right of way, higher fees and charges. It enables entities to undertake the laying of pipelines for transportation of natural gas and petroleum products in a time-bound manner and increase the number of piped natural gas users across India.

Quick approvals are expected to reduce dependence on LPG, 60 per cent of which India imports, with 90 per cent coming from the Strait of Hormuz, which remains interrupted due to the war. Although India has diversified LPG imports from non-Hormuz sources, the Prime Minister has said that the conflict may have long-term impacts and the country must prepare accordingly.

What it means for consumers

In the section on grant of permission to expand PNG in housing areas, the order says the relevant entity, being either a public entity or a non-public entity that controls access to, or owns any land comprising any housing area, shall within three working days of an application made by an authorised entity, grant right of way or right of use or any permission for the purposes of enabling such authorised entity to lay, build or expand a pipeline or any other facilities for enabling transportation of natural gas or distribution and supply of natural gas to all residential units located within the relevant housing area.

The last mile connectivity for a domestic PNG consumer shall be granted within forty-eight hours.

Rule for housing societies

There are many impediments currently faced in laying pipelines for transportation of natural gas to consumer premises, as well as pipelines for transportation of petroleum products. These include approvals from

various authorities, imposition of very high fees and charges, and at times denial of access to land or residential areas, as well as premises by consumers themselves, or in case of domestic consumers, their resident welfare associations.

The new order mandates that all housing areas be connected to a pipeline network, enabling the distribution and supply of natural gas through pipelines to all residential units within a housing area.

What if a housing society says not to a pipeline

The order stated that if the relevant entity (housing society, RWA) fails to grant the right of way or right of use, or any permission as sought within three days of application, the authorised entity shall:

Notify the designated officer of the details of the housing area and the addresses of all the residential units as available in the public records that are located in such housing area;

Issue a public notice together with the addresses mentioned in the notice and display it at the entry points or public roads closest to the housing area of such application having been made but no approval having been provided with the consequences stated in this sub-clause;

Cause to be published the public notice in two daily newspapers, one in English and one in the official language of the relevant State, having wide circulation in the place where the housing area is located;

Notify the LPG distributorships of all oil marketing companies in the area of the public notice issued with the addresses with a copy to the relevant marketing official of all oil marketing companies, with a request to notify the residents of the relevant addresses listed in such notice, either by text message or telephonically or by recorded voice message, that supply of LPG to the relevant address shall be stopped within three months from the date of the notice.

The order specifies that personal details of the residents, including names will not be published in the public notice.

Can societies lose LPG supply

Yes, the notification states that LPG supply to households in the relevant housing area that do not grant permission for pipelines will cease upon expiry of three months from the date of the first notice. However, LPG supply will not be ceased, if the authorised entity issues a no objection certificate (NOC) on the grounds that it is technically infeasible to provide a piped natural gas connection to such households.