Future Demand for Natural Gas in India
According to a study by the Petroleum and Natural Gas Regulatory Board (PNGRB), city gas distributors are poised to become the largest demand driver for natural gas in India by 2030, surpassing the current top consumer, the fertiliser sector.
Projected Growth in Natural Gas Consumption
- India's overall natural gas consumption is expected to rise by 8% annually, reaching 297 million metric standard cubic meters per day (mmscmd) in the next five years.
- The city gas segment, currently accounting for a fifth of total consumption, is projected to expand nearly two-and-a-half times to consume 87.1 mmscmd by 2030, up from 36.9 mmscmd in 2024.
Comparison with Other Sectors
- City gas distributors will represent 29% of total consumption in 2030.
- The fertiliser sector’s growth is expected to be modest at 2% annually, reaching 65.3 mmscmd in 2030, with its share in overall consumption dropping from 31% to 22%.
Factors Driving Natural Gas Demand
- Government initiatives to popularise natural gas.
- Rapid development of distribution infrastructure.
- Expansion of pipelines and CNG vehicle proliferation.
- Enhanced affordability of natural gas.
Sector-Specific Growth
- Gas consumption in refineries and petrochemical complexes is expected to nearly double to 43.3 mmscmd by 2030.
- Petrochemical production capacity will increase from 29.62 million tonnes to 46 million tonnes annually by 2030.
- The power sector’s gas consumption will grow from 25.2 mmscmd to 35.7 mmscmd.
Conclusion
The study highlights that favourable global market trends for LNG availability, continuous infrastructure expansion, rising economic activities, and supportive policies are pivotal in boosting the adoption of natural gas across various sectors in India.
