The scheme, effective from 1 September 2026, incentivises CGD companies to convert unbilled PNG connections into active billed connections and expand their domestic PNG network into new areas. The initiative is aimed at accelerating household access to cleaner, safer and affordable piped cooking gas.

Under the scheme, eligible CGD entities will receive an additional allocation of 200 standard cubic metres (SCM) of domestically produced, lower-priced APM gas for every incremental billed domestic PNG connection achieved above the threshold level specified for the respective geographical area.

The additional gas allocation will substitute the costlier Liquefied Natural Gas (LNG) that CGD entities currently procure for their Compressed Natural Gas (Transport) segment, thereby lowering their overall gas-sourcing costs.

The resulting cost savings are expected to shorten the payback period for capital expenditure incurred on domestic PNG connections from around 10 years to approximately 3 years, providing CGD entities a strong financial incentive to expand household PNG connectivity more rapidly.