IGL Eyes Expansion Through Stakes In CGD Companies

Indraprastha Gas Limited (IGL) is exploring acquiring stakes in existing city gas distribution (CGD) companies as the compressed natural gas (CNG) distributor looks to expand beyond its current operating footprint.

The plans were outlined by Chairman Subhankar Sen at IGL’s 27th Annual General Meeting, alongside the company’s push into renewable energy and backward integration.

At the close of trading on 24 September, the IGL share price was ₹145.74 on the National Stock Exchange (NSE), down 0.92% for the day.

Why Is IGL Exploring Stakes In Other CGD Companies?

IGL is assessing opportunities to acquire stakes in existing city gas distribution companies, although the company has not disclosed details of any potential transactions.

The move comes as IGL continues to expand its existing network. During 2025-26, it added 70 CNG stations, taking the total to 1,024. It also added more than 3.70 lakh domestic piped natural gas (PNG) connections.

IGL currently operates across Delhi, Noida, Greater Noida, Ghaziabad, Faridabad, Rewari, Gurugram, Karnal, Kaithal, Fatehpur, Ajmer, Pali, Rajsamand, Hamirpur, Shamli, Muzaffarnagar, Banda and parts of Kanpur and Meerut.

What Are IGL’s Solar Power Plans?

The company is also looking to use renewable energy to replace conventional grid power.

IGL has signed a joint venture agreement with Rajasthan Vidyut Utpadan Nigam (RVUNL) to establish a 500 MW greenfield solar power plant in Rajasthan. It has separately floated a tender for another 200 MW solar plant in the state.

The Chairman said the government’s GOBARdhan initiative could complement the CGD network and help reduce the carbon intensity of the company’s energy mix.

How Large Is IGL’s Existing Network?

IGL has around 32,000 km of pipelines serving more than 2.1 million CNG vehicles through over 1,000 stations. Its PNG network has connected more than three million households across its operating areas.

Mr Sen also noted that geopolitical tensions and disruptions in key energy routes had affected energy availability and costs during the last financial year, contributing to greater volatility in gas and other energy prices.

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