NEW DELHI: Amid a deepening LPG supply shortage due to the ongoing war in West Asia, the Centre on Tuesday notified the Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026 to fast-track pipeline infrastructure across the country.
The order has been issued under the provisions of the Essential Commodities Act, 1955. Under the new framework, entities authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB) or the government will be allowed to lay, operate and expand pipelines across public, private and residential areas.
It mandates that all public entities—including central and state governments, urban authorities and local bodies—must grant permissions within specified timelines, failing which approvals will be deemed to have been granted automatically. The timelines range from 10 days for smaller city gas distribution (CGD) networks to up to 60 working days for large transmission pipelines.
A key highlight of the order is that housing societies, resident welfare associations (RWAs), and other entities controlling access to residential premises are required to grant right of way within three working days of an application. In case of delays or denial, LPG supply to the concerned households may be discontinued after three months.
As per the order, if a household fails to apply for a PNG connection despite being notified by the authorised entity, LPG supply to that address can be stopped after three months, unless it is technically infeasible to provide piped gas.
The order also bars public entities from imposing any additional taxes, levies or charges beyond those specified. Standardised charges have been introduced for right of way, road restoration and land use, with options for “dig and pay” or “dig and restore” mechanisms.
In non-public areas, pipeline developers are required to enter into agreements with landowners. However, if no agreement is reached and there is no alternative route, the designated district authority can intervene and grant right of way after hearing objections. Compensation to landowners will be based on a fixed formula linked to the circle rate of land.
The order also places accountability on pipeline operators. If an authorised entity fails to commence work within four months of receiving approval, it may face penalties and risk losing exclusivity in that area.
Additionally, the PNGRB has been designated as the nodal agency to monitor implementation, track approvals and rejections, and ensure compliance by authorised entities.