India's natural gas consumption set to surge 60% by 2030

Posted on 12 Feb 2025

The International Energy Agency (IEA) at India Energy Week 2025 today released its comprehensive India Gas Market Report, revealing that India's natural gas sector has reached an inflection point. The report projects India's natural gas consumption to increase by nearly 60% to reach 103 billion cubic meters (bcm) per year by 2030, positioning the country's consumption levels comparable to present-day Saudi Arabia.

According to the report, this substantial growth trajectory is supported by three major trends: the rapid expansion of India's gas infrastructure, a rebound in domestic natural gas production, and an expected easing of global gas market conditions. The report emphasizes that supportive government policies have created a favorable environment for increased natural gas consumption through 2030.

The city gas distribution (CGD) sector is poised to lead this expansion, driven by the rapid growth of compressed natural gas (CNG) infrastructure and the cost advantage of gas over liquid fuels for small industrial users. Heavy industries, including iron and steel manufacturing, are projected to add around 15 bcm annually to the demand, while gas use in oil refining is expected to increase by more than 4 bcm annually as more refineries connect to the grid.

The IEA report indicates that with targeted strategies and additional policy support, India's gas consumption could potentially reach 120 bcm annually by 2030, approaching the current consumption levels of South America. This accelerated scenario would involve higher utilization of gas-fired power plants, faster adoption of LNG in heavy-duty transport, and more rapid expansion of CGD infrastructure.

While domestic gas production, which met 50% of demand in 2023, is expected to grow moderately through 2030, LNG imports are projected to more than double during this period, reaching 64 bcm annually by 2030. This positions India to remain the fourth-largest LNG importer globally, highlighting the country's growing significance in the global gas market.

Kindly follow us for updates on:

LinkedIn