Madhya Pradesh Urban Development Minister Babulal Gaur informed this on Thursday after meeting a delegation of Gas Authority of India Ltd (GAIL) at his residence here.
The modalities to supply PNG in Bhopal and adjoining Mandideep industrial town would be worked out soon, Gaur said.
The Minister said he has directed the Bhopal Municipal Corporation (BMC) authorities to find a suitable place for setting up the mother station of the PNG distribution network.
The PNG/CNG would be available for both domestic as well as commercial purposes, he said.
Bhopal Mayor Krishna Gaur and BMC Commissioner Vishesh Gadhpale were also present at the meeting.
A GAIL official, Pradeep Madan, said the Government- owned natural gas processing and distribution company's subsidiary, Avantika Gas, is already active in the state.
For supplying PNG to Bhopal, the existing pipeline from Mumbai to Delhi will have to be extended to the state capital from Biora, about 100km from here, he said.
PNG is being used successfully worldwide and is fast emerging as an alternate fuel which is more environment- friendly than petrol and diesel, Madan said.
Madan said the cost of running a vehicle on CNG is 40- 50 per cent cheaper than petrol and 20-30 per cent less than diesel.
At present CNG and PNG is being supplied in Indore, Ujjain and Gwalior. Domestic PNG is being supplied in nearly 4,000 houses in these cities and over 5,000 vehicles are running on CNG.