Government Briefs Parliament on Oil, Gas, and Alternative Fuel Projects

The Government of India has provided an update on key initiatives in the oil, gas, and clean energy sectors, including exploration, LNG infrastructure, city gas distribution, hydrogen, biofuels, and compressed bio gas.

The Hydrocarbon Exploration and Licensing Policy (HELP), launched in 2016, introduced the Open Acreage Licensing Policy (OALP) to attract investment in oil and gas exploration. Under OALP Rounds I to IX, 172 exploration blocks covering 3,78,652 square kilometres have been awarded. The tenth round, offering 25 blocks covering 1,91,986.21 square kilometres, was launched on 15 April 2025.

India’s eight operational Liquefied Natural Gas (LNG) terminals have a combined capacity of 52.7 million metric tonnes per annum (MMTPA). State-owned oil and gas companies have commissioned 13 LNG retail stations, while private operators have established an additional 16.

The Petroleum and Natural Gas Regulatory Board (PNGRB) has authorised City Gas Distribution (CGD) networks in 307 geographical areas, covering nearly all of mainland India (excluding islands). As of 31 May 2025, CGD entities have installed 1.5 crore domestic piped natural gas (PNG) connections and commissioned 8,083 compressed natural gas (CNG) stations.

The National Green Hydrogen Mission, launched in January 2023, targets production of 5 million metric tonnes of green hydrogen annually by 2030, with a focus on making India a hub for production, usage, and exports.

Under the National Policy on Biofuels 2018, amended in 2022, the target for 20 percent ethanol blending in petrol was advanced from 2030 to the ethanol supply year (ESY) 2025–26. As of 30 June 2025, public sector oil marketing companies have achieved an average blending rate of 18.93 percent for the ongoing ESY.

The Sustainable Alternative Towards Affordable Transportation (SATAT) initiative, launched on 1 October 2018, continues to promote the production and use of compressed bio gas (CBG) from waste and biomass sources alongside natural gas.

The information was shared by Minister of State for Petroleum and Natural Gas Suresh Gopi in a written reply to the Rajya Sabha.