India's Natural Gas Boom: Fueling Future Growth

India's natural gas consumption is expected to rise significantly, driven by its use in city gas distribution and as a bridge fuel towards cleaner energy. The Petroleum and Natural Gas Regulatory Board projects consumption to reach up to 630 mmscmd by 2040, necessitating increased imports and infrastructure expansion.

India is poised for a substantial increase in natural gas consumption, with projections indicating up to a 60% rise by 2030. This growth is largely fueled by the expanding use of CNG in automobiles and gas for industrial and cooking purposes, as reported by the Petroleum and Natural Gas Regulatory Board (PNGRB).

The study estimates that natural gas consumption will jump from 188 million standard cubic metres per day in 2023-24 to 297 mmscmd by 2030 in a 'Good-to-Go' scenario, which anticipates moderate growth. In a more optimistic 'Good to Best' scenario, consumption could soar to 365 mmscmd by 2030 and 630 mmscmd by 2040.

As India seeks to increase natural gas's share in its primary energy mix to 15% by 2030, the sector will rely on increased LNG imports and infrastructure developments to meet demand. City gas distribution is expected to be a major growth driver, doubling or tripling current consumption levels, while the power and fertilizer sectors see moderate growth. This expansion comes with challenges, including policy uncertainty and geopolitical risks.

(With inputs from agencies.)