The Petroleum and Natural Gas Regulatory Board (PNGRB) has authorised state-run GAIL (India) Ltd to build about 1,800 km of new Liquefied Petroleum Gas (LPG) pipeline infrastructure with an estimated investment of ₹7,000 crore, as announced on 21 August 2026. The decision will expand India’s PNGRB-approved common carrier LPG pipeline network from about 7,700 km to nearly 9,500 km, a jump of close to 23.5 percent. By linking import terminals on the west coast to inland bottling plants, the move aims to cut road movement of LPG tankers, lower logistics costs and strengthen supply security at a time when India imports about 60 percent of its cooking gas.
What Has PNGRB Authorised Now?
The authorisation covers three distinct LPG pipeline projects that together add roughly 1,800 km to the national network. All three have been awarded to GAIL (India) Ltd, India’s largest natural gas transmission company, to lay, build, operate and expand as common carrier pipelines. The regulator stated that the projects will traverse six states, Telangana, Maharashtra, Uttar Pradesh, Uttarakhand, Karnataka and Goa, though the core consumption centres lie in the first five states. Earlier briefings that mentioned five states omitted Goa, which features in the Shikrapur corridor as a branch link.
The expansion is significant because India today relies heavily on LPG arriving at coastal import terminals and then moving by road and rail to bottling plants deep inland. PNGRB has been pushing to eliminate primary movement of LPG by road to bottling plants, a goal linked to road safety, traffic decongestion and emission control after a series of tanker accidents. Once completed, these three lines will make pipeline transport the backbone for feeding bottling plants, replacing thousands of tanker trips each year.
The financial scale is also notable. At about ₹7,000 crore, the investment averages close to ₹3.9 crore per km, reflecting pipeline laying costs, pumping stations, storage and safety systems. The authorised pipelines will be declared as common carrier under the PNGRB Act, meaning spare capacity beyond GAIL’s own use must be offered to other entities on a non-discriminatory, open access basis at regulated tariffs.
Three New LPG Corridors: Route Map and Scale
Each of the three corridors connects a supply or transit hub with major inland demand centres. Together they create a continuous north-south and west-south grid that complements the east-west Kandla to Gorakhpur backbone.
At a Glance: The Three Pipelines
| Pipeline Corridor | Length | States Covered | Purpose |
|---|---|---|---|
| Cherlapally (Telangana) to Nagpur (Maharashtra) | 556 km | Telangana, Maharashtra | Links Hyderabad region industrial and urban LPG demand with central India bottling plants |
| Jhansi (Uttar Pradesh) to Sitarganj (Uttarakhand) | 611 km | Uttar Pradesh, Uttarakhand | Feeds the densely populated northern plains and hill state distribution network |
| Shikrapur (Maharashtra) to Goa and Hubli (Karnataka) | 633 km | Maharashtra, Goa, Karnataka | Connects western Maharashtra to coastal Goa and north Karnataka hubs |
Collectively the three lines span 1,800 km and push the common carrier LPG network from 7,700 km to about 9,500 km. The Shikrapur to Goa and Hubli line is the longest among the new batch, while the Cherlapally to Nagpur line provides a critical central Indian link where GAIL already operates a natural gas pipeline from Mumbai to Jharsuguda via Nagpur. The Jhansi to Sitarganj corridor, at 611 km, will strengthen supply to Uttar Pradesh, India’s largest LPG consuming state, and extend it into Uttarakhand.
These routes were part of a larger plan where PNGRB had invited bids in April 2026 for four LPG corridors covering about 2,500 km with a tentative outlay of ₹12,500 crore under a set of nine identified LPG pipeline projects aimed at phasing out bulk LPG road movement by 2030. Three of those four have now been authorised to GAIL, while the fourth, a Paradip to Raipur link, is still pending authorisation.
What Is PNGRB and What Does It Regulate?
The Petroleum and Natural Gas Regulatory Board (PNGRB) is a statutory body constituted under the Petroleum and Natural Gas Regulatory Board Act, 2006, notified on 31 March 2006. It was set up to regulate the downstream activities of refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas, excluding production of crude oil and natural gas. Its mandate is to protect consumer interests, ensure uninterrupted and adequate supply across the country, and promote competitive markets.
The Board operates under the Ministry of Petroleum and Natural Gas and is headquartered in New Delhi. Its core functions include authorising entities to lay, build, operate or expand common carrier or contract carrier pipelines and city gas distribution networks, declaring pipelines as common or contract carriers, and regulating access and transportation tariffs. It also lays down technical standards and specifications including safety standards, known as T4S, and monitors compliance.
In practice, any entity that wants to build a new LPG or natural gas pipeline must apply to PNGRB for authorisation. The Board gives wide publicity, invites applications or objections, evaluates bidders on technical and financial criteria, and then issues an authorisation letter. Tariffs for transport are later determined by the Board to ensure fair and non-discriminatory pricing.
How Common Carrier Pipelines Work
A common carrier pipeline is a pipeline declared or authorised by PNGRB for transportation by more than one entity on a non-discriminatory open access basis, as defined in Section 2(j) of the PNGRB Act, 2006. It does not include pipelines laid to supply a specific consumer or to transport crude oil. This is different from a contract carrier, where capacity is booked by entities through firm contracts of at least one year, and from a captive or dedicated pipeline meant for own use.
Under common carrier rules, the pipeline owner has a right of first use for its own requirement, but the remaining capacity, and at least 33 percent of total capacity in many cases, must be made available to any third party on a first come, first served basis after entering a transport contract, usually for less than one year. The owner must publish available capacity on its website and allocate it transparently under the Access Code for Common Carrier or Contract Carrier Pipelines Regulations, 2008. Transportation rates are regulated by PNGRB, so a small bottler in Nagpur can use a GAIL pipeline at the same tariff as a large oil marketing company.
This model prevents monopoly control of infrastructure, encourages independent shippers to emerge, fosters competition in LPG and natural gas marketing, and ensures equitable distribution of fuel across states.
What Is GAIL?
GAIL (India) Limited, formerly Gas Authority of India Limited, was incorporated in August 1984 as a Central Public Sector Undertaking under the Ministry of Petroleum and Natural Gas. It was created to build, operate and maintain the Hazira-Vijaipur-Jagdishpur (HVJ) pipeline, then one of the world’s largest gas pipelines. The company was renamed GAIL (India) Limited on 22 November 2002 and was conferred Maharatna status on 1 February 2013. It is headquartered at GAIL Bhawan, Bhikaji Cama Place, New Delhi, and is majority owned by the Government of India.
GAIL is India’s leading natural gas company with presence across transmission, marketing, LPG production and transmission, petrochemicals, city gas distribution and LNG. It operates more than 18,688 km of natural gas pipelines, about 65 percent of India’s gas transmission network, and about 2,040 km of LPG pipelines including the 1,427 km Jamnagar-Loni Pipeline (JLPL) and the 610 km Vizag-Secunderabad Pipeline (VSPL). The company also runs gas processing units at Vijaipur, Pata, Gandhar and Vaghodia with capacity of 1,343 thousand tonnes per annum of LPG and liquid hydrocarbons.
Building on the Kandla-Gorakhpur Backbone
The new authorisations build directly on the earlier authorised Kandla-Gorakhpur LPG Pipeline (KGPL), currently India’s longest LPG pipeline at about 2,805 km according to IHB Limited, though PNGRB statements round it to 2,757 km. The KGPL is being implemented by IHB Limited, a joint venture of Indian Oil Corporation (50 percent), Bharat Petroleum (25 percent) and Hindustan Petroleum (25 percent), incorporated on 9 July 2019.
The KGPL runs from Kandla in Gujarat to Gorakhpur in Uttar Pradesh via Madhya Pradesh, with state-wise lengths of roughly 1,076 km in Gujarat, 621 km in Madhya Pradesh and 1,108 km in Uttar Pradesh. It is designed to transport 3.75 million metric tonnes per annum (MMTPA) of LPG at an estimated cost of ₹10,088 crore, sourcing LPG from import terminals at Kandla, Dahej and Pipavav and the port at Mundra via Mithirohar, plus refineries at Koyali in Gujarat and Bina in Madhya Pradesh. The line will feed 22 LPG bottling plants, three in Gujarat, six in Madhya Pradesh and 13 in Uttar Pradesh, and is authorised by PNGRB as a common carrier pipeline.
Together, the KGPL and the three new GAIL corridors signal a national shift from fragmented road and rail movement to an integrated pipeline grid. The PNGRB-approved common carrier LPG network had till now been around 7,700 km, which included the existing Jamnagar-Loni and Vizag-Secunderabad lines operated by GAIL. With KGPL plus the new 1,800 km, the network is on track to near 12,300 km when both sets are fully commissioned, though the immediate milestone is the rise to 9,500 km with the three GAIL projects alone.
Why Pipelines Matter: From Import Terminals to Kitchens
India is the world’s second largest consumer and third largest importer of LPG, with about 33.37 crore domestic LPG consumers including about 10.55 crore beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY) launched in 2016. Household cooking accounts for about 90 percent of LPG consumption. Daily consumption is about 80,000 tonnes, while domestic production meets only about 40 percent of demand. Imports therefore meet roughly 60 percent, or about 54,000 tonnes per day, and in FY26 imports were about 20.50 million tonnes during April to February, about 61.7 percent of consumption in that period.
Nearly 90 to 92 percent of LPG imports come from the Middle East Gulf, moving through the Strait of Hormuz. When the strait faced closure in late February 2026 following conflict in West Asia, India’s supply vulnerability was exposed, forcing booking gaps and priority supply to households. A robust inland pipeline network reduces this risk by moving imported LPG quickly and reliably from ports to inland bottling plants, creating line pack storage and easing emergency response.
The benefits are multi-layered. For the government and oil companies, pipelines lower logistics costs, cut fuel used by trucks, and provide a safer and more energy efficient alternative to road. For citizens, more reliable transport means fewer shortages and price spikes during global disruptions. For the transport sector, fewer LPG tankers mean less congestion, fewer accidents and lower emissions. For GAIL and other marketers, common carrier access means any shipper can book capacity, promoting competition and better service in far flung markets of Karnataka, Telangana and Uttarakhand.
What Is LPG and How Is It Different from PNG, CNG and LNG?
Liquefied Petroleum Gas (LPG) is a mixture of light hydrocarbons, mainly propane (C3H8) and butane (C4H10), with small amounts of propylene and butylene, which are gaseous at normal temperature and pressure but can be liquefied under moderate pressure. In India it is governed by IS 4576 and is stored as a liquid in cylinders and tanks, then vaporised for burning. It is heavier than air, has high calorific value, and is given a strong odour by adding ethyl mercaptan for leak detection.
LPG is often confused with other gas fuels, but the differences are clear:
| Fuel | Full Form | State and Supply | Typical Use |
|---|---|---|---|
| LPG | Liquefied Petroleum Gas | Propane and butane stored as liquid under pressure, supplied in cylinders or bulk via pipeline | Household cooking, commercial kitchens |
| PNG | Piped Natural Gas | Primarily methane supplied via city gas distribution pipelines at low pressure | Household cooking and heating through fixed pipelines |
| CNG | Compressed Natural Gas | Methane compressed to high pressure (about 200 bar) | Automotive fuel for buses, cars and auto rickshaws |
| LNG | Liquefied Natural Gas | Methane cooled to about minus 162 degrees Celsius to become liquid | Long distance transport by ship, regasified for pipelines and industry |
In short, LPG is propane plus butane for cooking cylinders, while PNG, CNG and LNG are all methane in different forms. LPG pipelines carry liquid LPG, not natural gas, and require different material, colour code and safety standards.
Significance, Benefits and the Road Ahead
The authorisation is more than a construction project. It advances three national goals at once, energy security, logistics efficiency and safety.
For energy security, the pipelines create resilient corridors that can keep LPG flowing even when global shipping is disrupted. By connecting west coast import hubs to central, northern and southern India, they reduce dependence on a single transport mode and allow faster redistribution during emergencies. For logistics and economy, pipeline transport is generally cheaper per tonne km than road, cuts handling losses, and lowers carbon emissions from diesel trucks. For safety and environment, fewer tankers on highways mean fewer accidents, less traffic and lower air pollution.
The projects also strengthen the Make in India and Atmanirbhar Bharat push for infrastructure, as pipeline construction generates demand for steel pipes, pumps, valves and engineering services, and creates construction and operational jobs. Once operational, the stable supply will support the sustained demand created by PMUY, which expanded LPG access to more than 10 crore poor households and pushed national consumption from about 21.6 million tonnes in FY17 to about 31.3 million tonnes in FY25.
Going forward, timelines will depend on statutory clearances including right of use acquisition under the Petroleum and Minerals Pipelines Act, 1962, environment and forest clearances, and state-level permissions. GAIL will need to appoint consultants, finalise detailed route surveys, and secure financing before physical laying begins. PNGRB will meanwhile monitor progress and later notify pipeline tariffs. The remaining Paradip-Raipur corridor, part of the nine projects identified to eliminate primary LPG movement by road by 2030, will be the next authorisation to watch.
Key Takeaways
- PNGRB authorised about 1,800 km of new LPG pipeline infrastructure with an investment of ₹7,000 crore on 21 August 2026.
- The three projects will be built by GAIL (India) Ltd as common carrier pipelines on open access basis.
- Routes are Cherlapally to Nagpur (556 km), Jhansi to Sitarganj (611 km) and Shikrapur to Goa and Hubli (633 km) across Telangana, Maharashtra, Uttar Pradesh, Uttarakhand, Karnataka and Goa.
- The PNGRB-approved common carrier LPG network will expand from 7,700 km to about 9,500 km, a growth of about 23.5 percent.
- PNGRB was established under the PNGRB Act, 2006 notified on 31 March 2006 and is headquartered in New Delhi.
- GAIL was founded in August 1984, renamed from Gas Authority of India in 2002, and conferred Maharatna status in 2013.
- The approvals build on the Kandla-Gorakhpur LPG Pipeline (2,805 km), India’s longest LPG pipeline being built by IHB Limited, a joint venture of IOCL, BPCL and HPCL.
- LPG is a mix of propane and butane, governed by IS 4576, and differs from PNG, CNG and LNG which are all methane in different forms.
