New Delhi, February 14
Stakeholders from India's City Gas Distribution (CGD) sector convened for a panel discussion on "Optimising India's Transformative City Gas Distribution Model to Deliver the Benefits of a Robust and Secure Gas-Based Economy," at India Energy Week 2025 to explore strategies to expand and optimise the CGD network.
Experts highlighted the need for policy coordination, investment in digital solutions, and innovative financial models to drive efficiency and long-term growth for the CGD sector.
The discussion brought together key industry experts, including Goutom Chakraborty, CEO, GAIL Gas Limited; Rajesh Mediratta, MD & CEO, Indian Gas Exchange Limited; Kamal Kishore Chatiwal, MD, Indraprastha Gas Limited; Akhil Mehrotra, MD, Pipeline Infrastructure Limited; and N. Senthil Kumar, Director-Pipelines, Indian Oil Corporation.
Goutom Chakraborty highlighted that despite its slow start, the sector has witnessed 10% growth over the past five to six years. He attributed the lag to long gestation periods and a lack of prioritisation by infrastructure companies. However, increasing foreign investments, mergers, and acquisitions signal promising prospects for future expansion.
Kamal Kishore Chatiwal echoed the sentiment by citing the CGD sector's evolution into a full-fledged industry, with the number of gas stations growing from 66 to 307 in the past decade.
N Senthil Kumar added that while hydrogen and EV adoption are still in their early stages, urbanisation is driving the growth of piped natural gas (PNG), reinforcing CGD's relevance. He further addressed supply security concerns, noting the need to double storage capacity and strengthen the gas grid to ensure stable availability.
Saurabh Singh said that the CGD sector, the second largest consumer of gas, is poised to become the number one consumer of gas energy by overcoming supply-demand gap challenges.
Akhil Mehrotra emphasised the critical infrastructure challenges, particularly the inability to lay pipelines due to a lack of municipal clearances and coordination between state and central authorities. Inadequate land availability for CNG plant installations further hampers progress, with Delhi being the only city to successfully implement large-scale infrastructure.
Rajesh Mediratta highlighted the importance of robust market infrastructure, transparency, and payment security, which have positively impacted CGD through better gas exchanges.
The role of digital analytics emerged as a key theme in driving efficiency and consumer experience. Goutom Chakraborty advocated for prepaid meters to help CGD companies understand consumption patterns and protect revenues.
Rajesh Mediratta and Akhil Mehrotra echoed the benefits of smart metering, with AI-driven demand-supply management improving efficiency. Kamal Kishore Chatiwal emphasised how AI can streamline queue management at CNG stations while also enhancing safety compliance.
N Senthil Kumar concluded by underscoring the role of data analytics in reducing supply dry-outs and ensuring a more reliable CGD network.
- ANI