Industrial PNG
Overview
Our Industrial PNG solution provides a seamless, reliable natural gas supply tailored to meet the diverse energy needs of industrial facilities – from boilers and dryers to heat treatment and forging processes. With an extensive pipeline network across industrial belts, we ensure direct delivery, eliminating the need for bulky storage and optimising operational space.
Switching to natural gas enables industries to enhance efficiency while significantly reducing emissions and their carbon footprint. At ATGL, we partner with industries to drive sustainability and ensure compliance with evolving regulatory requirements.
Key Statistics
6%Volume growth Y-o-Y, reaching 228 MMSCM
253New customers
Operational Highlights, FY 2024-25
The Future of Industrial Natural Gas in India
The industrial natural gas sector in India is poised for significant growth, driven by economic expansion, environmental concerns, and supportive government policies.
1. Economic Growth and Rising Energy Demand
India’s rapid industrialisation and urbanisation have led to a surge in energy demand. As industries scale operations, there is an increasing need for reliable, cleaner, and cost-effective energy sources.
- Natural gas is emerging as the preferred choice due to its efficiency and lower emissions compared to traditional fuels like coal and oil
- Its wider acceptability among industrial players today reflects a shift towards sustainable energy solutions, a stark contrast to the scenario a decade ago
2. Government Policies Driving Adoption
The Indian government has been actively promoting the use of natural gas through policy reforms and tax incentives, facilitating wider adoption among industries.
- Expansion of City Gas Distribution (CGD): With extensive coverage of trunk pipelines, CGD players are rapidly extending the network to serve more industrial consumers
- Tax Reductions on PNG: Several states have significantly lowered Value Added Tax (VAT) on Piped Natural Gas, making it a more cost-effective alternative:
Change in VAT Across Various Geographies (Before vs After)
3% 
1,005
bpsMaharashtra
5.5% 9,000
bpsKarnataka
6% 9,000
bpsGujarat
5% 19,500
bpsAndhra Pradesh
10% 4,500
bpsRajasthan
3. Sustainability and ESG Alignment
Industrial success today is measured not only in terms of profitability but also by sustainability and environmental responsibility
- Companies are increasingly assessed based on their adherence to ESG criteria and Sustainable Development Goals (SDGs)
- Many organisations now disclose their energy sources and transition strategies in their Management Discussion & Analysis (MDA) reports, reinforcing the shift towards cleaner fuels
- As a low-carbon alternative, natural gas aligns with India’s sustainability commitments by significantly reducing pollutants and greenhouse gas emissions
Strategic Developments, FY 2024-25 and Onward
In FY 2024-25 and beyond, we have accelerated our PNG infrastructure network, particularly in 15 Gas from 9th and 10th bidding rounds. Our focus remains on connecting major anchor loads in these geographical areas while strengthening our presence in existing markets.
