Positive impactSector
Govt to allocate HPHT gas for CNG, PNG as per CGD entity’s consumption
BusinessLine 4 Sept·4 Sept 2026, 4:15 pm
The government has announced a policy change that will allow City Gas Distribution (CGD) companies to receive a larger share of high-pressure, high-temperature (HPHT) gas. This fuel is currently used primarily for industrial purposes, but the new allocation rules will direct more of it toward the distribution network for Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) for domestic use.
This shift is significant for investors because it directly impacts the supply of fuel available for retail consumers. By increasing the availability of HPHT gas, the government aims to boost the distribution network's capacity to serve more customers. This could lead to higher sales volumes for CGD companies, potentially improving their revenue streams as they expand their customer base.
Investors should watch for updates on the specific allocation percentages and the timeline for implementation. The success of this policy will depend on how effectively CGD entities can utilize the additional gas to increase their market share and meet growing consumer demand.
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- Category: Sector.
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