LPG and PNG History in India — Burshane, KG Basin, PNG Connections Target 2034 | UPSC Energy MCQ 2026

With reference to Piped Natural Gas (PNG) and Liquefied Petroleum Gas (LPG) in India, consider the following statements:
1. LPG was first introduced in India in 1955 by Burmah Shell Oil Company in Mumbai under the brand 'Burshane'.
2. PNG in India is primarily sourced from the deepwater Krishna-Godavari (KG) basin, Assam, and Tripura.
3. India currently has approximately 1.5 crore PNG connections with a target to expand it to 12 crore by 2034.
Which of the statements given above is/are correct?

Correct Answer: 1, 2 and 3

All three statements are correct. India is strategically pushing to replace Liquefied Petroleum Gas (LPG) with Piped Natural Gas (PNG) for domestic cooking to reduce import dependence, especially after the blockade of the Strait of Hormuz in 2026 exposed critical vulnerabilities in LPG supply chains.

Statement-wise Analysis

• Statement 1 — Correct: LPG was first introduced in India in 1955 by Burmah Shell Oil Company in Mumbai under the brand 'Burshane'. The first organized distribution came in 1965 when Indian Oil Corporation launched its 'Indane' LPG connection in Kolkata.
• Statement 2 — Correct: PNG in India is domestically sourced from gas fields including the Krishna-Godavari (KG) basin (the biggest contributor), Assam, and Tripura. The KG-DWN 98/2 Block in the deepwater KG basin is expected to boost ONGC's gas output by 15%.
• Statement 3 — Correct: India currently has approximately 1.5 crore PNG connections (against ~33 crore LPG connections). The government has set a target to expand PNG connections to 12 crore by 2034.

Why India is Shifting from LPG to PNG

• India imports about 60% of its LPG, of which ~90% transits through the Strait of Hormuz.
• The 2026 West Asia geopolitical crisis disrupted this supply chain, highlighting energy security vulnerabilities.
• Domestic LPG production has witnessed a 25% increase due to government measures.

Key Differences: LPG vs PNG

• LPG: Propane + Butane; heavier than air; stored in cylinders; higher calorific value (90–95 MJ/m³).
• PNG: Primarily methane; lighter than air; distributed via pipeline (City Gas Distribution); uninterrupted 24/7 supply; lower calorific value (35–40 MJ/m³); inherently safer.

Pradhan Mantri Ujjwala Yojana

A major milestone in India's LPG expansion story, this scheme was launched in Ballia to scale up LPG access for women's health and rural empowerment.