October 16, 2026: The Petroleum and Natural Gas Regulatory Board (PNGRB) has published draft guidelines for blending up to 5 per cent hydrogen by volume into piped natural gas (PNG) supplied to households.

The move could help reduce India's dependence on imported natural gas. However, blending hydrogen into existing gas networks would require modifications or upgrades to ensure compatibility and safety. City gas distributors, including Indraprastha Gas Ltd, Mahanagar Gas Ltd (MGL) and GAIL, may need to invest in safety and monitoring systems.

Hydrogen-blended piped gas is also likely to cost more than conventional natural gas. City gas distribution companies would have to either absorb the additional costs or pass them on to consumers.

City gas distributors are already facing pressure from high and volatile liquefied natural gas (LNG) prices amid the ongoing West Asia crisis. Indraprastha Gas Ltd's net profit fell 44 per cent year-on-year to Rs 2.38 billion in the April-June quarter of FY27, while MGL reported a 39 per cent year-on-year decline in consolidated net profit to Rs 1.93 billion.

Green hydrogen prices discovered through government-backed tenders stand at Rs 387-397 per kg, inclusive of GST. The domestic natural gas benchmark price for October 2026 is $11.22 per million British thermal units (MMBtu), or approximately Rs 1,067 per MMBtu. According to analysts, on a comparable energy basis, green hydrogen costs roughly Rs 2,880-2,950 per MMBtu, about 2.7 times the October domestic natural gas benchmark. In Delhi, households currently pay Rs 50.59 per standard cubic metre (SCM) for PNG.

(Source: Daily Hunt)