According to a recent report by Wood Mackenzie, India’s natural gas production will peak in 2025, rising 4.5% from current levels.
However, experts expect production to decline after 2025, averaging a 3.6% annual drop until 2030.
Key Factors Behind the Decline
The report attributes this decline to structural reductions in existing fields and severe delays in launching new projects.
Additionally, experts project that production will fall sharply until 2040, decreasing by an average of 9% per year. The drop will primarily result from the slow pace of new discoveries and the depletion of mature fields.
Potential Impact of the Oilfields Amendment Bill
The Oilfields (Regulation and Development) Amendment Bill could significantly alter this scenario if successfully implemented. The bill aims to attract more investment in oil and gas exploration and production, which may help stabilize or even boost output levels.
Rising Imports to Meet Demand
As domestic production declines, India is expected to rely more on natural gas imports. The report predicts that by 2032, India will surpass China and Japan to become the world’s third-largest importer of liquefied natural gas (LNG).
As reported by oilmonster.com, India’s energy landscape is set for major changes. Rising demand and decreasing production are driving this transformation.
