India’s natural gas demand, a key transition fuel, will grow at 4.5% annually until 2050. Industrial demand will rise by 3.3% per year, while transport demand will grow by 6.4%.
The Global Gas Outlook report by the Gas Exporting Countries Forum (GECF) highlights that natural gas demand will surge from 66 billion cubic meters (bcm) in 2023 to 223 bcm by 2050. This growth will be primarily driven by industry, road transport, and power generation.
Expanding the National Gas Grid
India’s One Nation, One Gas Grid initiative is a crucial step in enhancing gas accessibility. The country plans to expand its pipeline network by more than 10,000 km, adding to the existing 24,500 km of transmission pipelines. This expansion will connect LNG terminals and domestic gas fields to major demand centers, eliminating infrastructure bottlenecks.
Industrial and Transport Sectors Lead Consumption Growth
The industrial sector will lead natural gas demand growth, adding 57 bcm and making up 36% of the increase from 2023 to 2050. Key industries like fertilizers, petrochemicals, and manufacturing will drive this surge, with an annual growth rate of 3.3%.
The transport sector’s demand is expected to reach 40 bcm by 2050, growing at an annual rate of 6.4%. Meanwhile, the power generation sector’s gas demand will increase at a slower pace due to the lack of explicit policy incentives for gas-based electricity generation.
LNG Demand and Infrastructure Investments
South Asia’s LNG demand may temporarily decline due to price sensitivity in the spot market. However, demand will recover after 2026 as prices drop.
India’s LNG imports will rise significantly from 22 million tonnes (mt) in 2023 to 130 mt by 2050, requiring major investments in regasification capacity. The country’s LNG infrastructure will expand from 51 mt per annum (mtpa) in early 2024 to 135 mtpa by 2050.
Government’s Policy Push
The Indian government has committed $67 billion over the next five to six years to boost natural gas infrastructure. This investment will increase domestic gas availability, expand LNG imports, enhance pipeline connectivity, and strengthen the city gas distribution network.
By early 2024, 98% of the population had access to the city gas network. Additionally, the government launched more bidding rounds to expand gas access to remote and underdeveloped regions.
Furthermore, authorities have pledged 7.5 million free LPG connections to women-led households over the next three years to promote energy equity. Meanwhile, to accelerate LNG adoption in freight transport, the government is developing over 1,000 LNG fueling stations along national highways.
Conclusion
India’s natural gas sector is on a steady growth path, backed by strong policy initiatives and infrastructure expansion. According to The Hindu Business Line, rising industrial and transport demand, along with government initiatives, will boost the country’s global energy standing.
