Abstract

Natural gas being a cleaner fuel is poised to serve as a transit fuel for the growth and expansion of green economy in India. Falling domestic gas production has been a concern for the last couple of years. But the demand for natural gas has been increasing due to a sharp fall in natural gas price in the international market and rise in liquefied natural gas (LNG) import. This paper highlights role of city gas distribution in the gas market development in the country. Authors discuss role of regulatory development, domestic gas pricing and allocation policy, LNG infrastructure, and cross-country natural gas pipeline in rapid development of natural gas market in India. Further, the paper draws attention to possible areas of concerns for the policy makers and the Government. The authors suggest ways to address the concerns of natural gas industry and rapidly expand the city gas distribution in the country.