https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

India’s Natural Gas Demand to Surge Nearly 60% by 2030: PNGRB Study

India currently imports nearly half of its natural gas, a dependence that is likely to increase as domestic supply lags demand. LNG imports are projected to more than double by 2030, with a particular emphasis on its role in long-haul transport.
Indian Masterminds Stories

New Delhi: India’s natural gas consumption is projected to rise by almost 60% by 2030, driven primarily by rapid expansion in the city gas distribution (CGD) sector and increasing demand across transport, residential cooking, and industrial use, according to a new study released by the Petroleum and Natural Gas Regulatory Board (PNGRB).

Under the study’s “Good-to-Go” scenario, which assumes moderate economic growth and steady policy advancement, India’s daily gas consumption is expected to grow from 188 million standard cubic metres per day (mmscmd) in 2023–24 to 297 mmscmd by 2030, and further to 496 mmscmd by 2040.

A more optimistic “Good-to-Best” scenario, incorporating accelerated development, policy support, and greater investments, projects consumption could reach 365 mmscmd by 2030 and 630 mmscmd by 2040.

CGD Sector to Drive Growth

The CGD sector – which supplies compressed natural gas (CNG) to vehicles and piped natural gas (PNG) to households and businesses—is expected to be the biggest driver of demand. Under the moderate scenario, the CGD sector will contribute 50 mmscmd of the incremental 110 mmscmd demand by 2030, and 129 mmscmd of the additional 198 mmscmd by 2040.

“The CGD sector is expected to be the primary growth driver, with consumption projected to grow 2.5 to 3.5 times by 2030 and 6 to 7 times by 2040,” the study noted.

India currently aims to increase the share of natural gas in its energy mix from 6–6.5% to 15% by 2030, as part of its commitment to cleaner energy and a net-zero emissions target by 2070. So far, the PNGRB has granted CGD licences across 307 geographical areas (GAs), extending the gas network to cover most of the country.

Rising Demand in Industrial Sectors

Beyond the CGD sector, refineries and petrochemicals are also set to increase gas usage, aided by greater emphasis on petrochemical integration. This sector is forecasted to add 21 mmscmd by 2030, and an additional 10 mmscmd by 2040.

While demand in power generation and fertilisers is expected to grow moderately, the transition toward low-emission energy solutions is likely to maintain gas as a vital component in these sectors.

Growing Reliance on LNG Imports

India currently imports nearly half of its natural gas, a dependence that is likely to increase as domestic supply lags demand. LNG imports are projected to more than double by 2030, with a particular emphasis on its role in long-haul transport.

“LNG as a long-haul transportation fuel could be a game changer,” the report said, highlighting the potential for LNG trucking to reduce diesel dependency – possibly mirroring China’s success in this domain.

As global LNG supplies expand, India may benefit from favorable long-term supply agreements at competitive prices, helping to stabilize import costs.

Challenges and Risks Remain

Despite the promising outlook, the PNGRB cautioned that realizing these projections hinges on sustained infrastructure development, conducive policy frameworks, and stable LNG pricing.

“Achieving India’s projected natural gas targets for 2030 and 2040 will require continued commitment… However, geopolitics, policy uncertainty, and gas price volatility cannot be ignored,” the report warned.

From 2015–16 to 2023–24, India’s natural gas consumption rose by 45%, from 131 to 188 mmscmd. While the power sector saw a marginal decline due to price sensitivity, CGD demand more than doubled with a compound annual growth rate (CAGR) of 12%. Fertilisers grew at 3.4% annually, and refineries by 1.8%.


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
ECI Sadan_ Election
Election Commission of India (ECI) Names 470 IAS, IPS, IRS Officers as Central Observers for Bihar and Other State By-Elections
IAS Rajeev Verma Delhi
Who Is IAS Rajeev Verma? The Officer Appointed as Delhi’s New Chief Secretary, to Take Charge on October 1
NTPC Congratulates Sheetal Devi
NTPC Congratulates Sheetal Devi on Historic Win as India’s First Individual Para Archery World Champion
IAS-IPS
ED Recommends Action Against 10 IAS, IPS Officers in ₹570 Cr Chhattisgarh Coal Scam
NTPC Awards
NTPC Shines at 19th Global Communications Conclave, Bags 127 Awards Including 1st Runner-Up for Champion of Champions Trophy
Odisha govt_resized
Odisha CM Announces 2% DA Hike for PSU Employees and Pensioners; Over 8.5 Lakh to Benefit from January 1, 2025
UPSC Image
UPSC Chairman Ajay Kumar to Host First-Ever Live Town Hall with Civil Service Aspirants on October 1 - Submit Questions by Sept 30
IAS Officer President murmu
Press Secretary To President of India's Post Goes Back To The IIS After 13 Years
ADVERTISEMENT
ADVERTISEMENT
Videos
Siddhartha Saxena UPSC CAPF
How Siddhartha Saxena Cracked UPSC CAPF AIR 326 Against All Odds
Dr. S.K
Technology Meets Ecology: IFS Dr S K Srivastava’s Game-Changing Innovations in Forest Management | Eco Warrior Awards 2025 Interview
IFS Uttam Kumar Sharma Interview
From Extinction to Exhilaration: The Untold Story and Future Vision of Project Cheetah | Led by IFS Uttam Kumar Sharma | Eco Warrior Awards 2025
ADVERTISEMENT
UPSC Stories
Ankit MPPSC 2024 Rank 3
From Village Dreams to Deputy Collector’s Chair: Meet Ankit, MPPSC Rank 3 Hindi Medium Topper
Ankit, a Hindi-medium aspirant from Balaghat, secured Rank 3 in MPPSC 2024 and became Deputy Collector...
Shubham Muchhala MPPSC 2024
9 Years, 6 Interviews, Now Deputy Collector: Meet MPPSC 2024 Hindi Medium Topper Shubham, the Face of Relentless Struggle
After nine years, seven prelims, six mains, and five interview failures, Shubham Muchhala secured MPPSC...
Abhay Daga IPS UPSC Success Story
IIT Graduate, Microsoft Alum, Actor, to Cracking UPSC CSE: The Story of Abhay Daga
Read the inspiring journey of Abhay Daga, an IIT graduate, Microsoft alum, and actor, who cleared UPSC...
Social Media
World Rhino Day India
On World Rhino Day, IFS Officer Parveen Kaswan Shares Rare Insights - India Now Hosts 80% of the World’s One-Horned Rhinos
September 22 Marks Global Call for Rhino Conservation; India Holds 80% of World’s Greater One-Horned...
Parag Madhukar Dhakate
Relentless Rains Wreak Havoc in Dehradun: IFS officer PM Dhakate Warns Citizens Amid Flash Floods
Cloudbursts in Dehradun triggered flash floods. IFS officer Dr. PM Dhakate warned citizens to stay indoors...
Forest Guard Tiger Encounter
Tigers Clash in the Wild as Forest Guards Capture Rare Footage , Retired IFS Mohan Pargaien Posts Viral Video
Retired IFS officer Mohan Pargaien shares viral video of three tigers brawling in Ramnagar, as forest...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
ECI Sadan_ Election
Election Commission of India (ECI) Names 470 IAS, IPS, IRS Officers as Central Observers for Bihar and Other State By-Elections
IAS Rajeev Verma Delhi
Who Is IAS Rajeev Verma? The Officer Appointed as Delhi’s New Chief Secretary, to Take Charge on October 1
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Siddhartha Saxena UPSC CAPF
Dr. S.K
IFS Uttam Kumar Sharma Interview
ADVERTISEMENT
ADVERTISEMENT