Dhakaমঙ্গলবার, ১৫ জুলাই ২০২৫

CNG Poised for Significant Growth as India Focuses on Energy Transition: Crisil

International Desk, Rtv News

Sunday, 22 June 2025 , 08:13 PM


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CNG remains competitive despite evolving allocation and pricing pressure.. Photo: Collected

The city gas distribution (CGD) sector is at the core of India's energy transition, with compressed natural gas, in particular, poised for significant growth, according to a report by Crisil Intelligence.

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"With the top states continuing to anchor demand, the next phase of growth should come from new geographies, backed by evolving gas-allocation patterns, private investments and aggressive vehicle conversion trends," the Crisil report titled 'City Gas Pulse' read.

On the other hand, the competitive intensity is rising, exclusivity periods are closing, and infrastructure gaps are being bridged selectively.

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City Gas Pulse provides a sharp, state-wise and player-wise view of CNG demand evolution, infrastructure rollout, investment concentration and market readiness.

CNG is becoming the focal point of India's energy mix and the city gas distribution (CGD) sector's growth as the country works towards achieving a 15 per cent share in the primary energy mix for natural gas.

According to Crisil, expansion of geographical areas and the increasing demand for cleaner mobility position CNG as a viable and sustainable alternative to traditional fuels.

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"Regional infrastructure development and readiness play a significant role in enabling wider gas access ..

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At COP26 held in 2021, India committed to an ambitious five-part "Panchamrit" pledge. They included reaching 500 GW of non-fossil electricity capacity, generating half of all energy requirements from renewables, and reducing emissions by 1 billion tonnes by 2030. India as a whole also aims to reduce the emissions intensity of GDP by 45 per cent. Finally, India commits to net-zero emissions by 2070.

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