India's Gas Boom: IEA Forecasts 60% Surge by 2030

India's natural gas consumption is expected to grow by 60% to 103 bcm/year by 2030, driven by growth in city gas distribution, industrial demand, and power generation. Despite moderate domestic production growth, India's LNG imports are set to double as demand rises, according to the IEA report.

India's natural gas consumption is set for a significant surge, with projections indicating a nearly 60% increase by 2030. According to the International Energy Agency's 'India Gas Market Report - Outlook to 2030', this growth will mirror the current gas consumption levels of Saudi Arabia, driven by city gas distribution and industrial demands.

The report highlights the robust expansion of the city gas distribution (CGD) sector, facilitated by the rapid development of compressed natural gas (CNG) infrastructure. This sector's growth is underpinned by the cost advantages gas holds over liquid fuels for small industrial consumers. Additionally, the heavy industrial sectors such as iron and steel production are predicted to collectively add about 15 bcm/year to the demand.

Despite a resurgence in domestic production, meeting roughly half of India's gas demand in 2023, the report anticipates only moderate growth through 2030. This is attributed to contributions from the deepwater fields in the Krishna Godavari basin, onshore production from coal bed methane (CBM), and discovered small fields (DSF). Meanwhile, India's LNG imports, already having increased by 70% between 2013 and 2023, are expected to double by 2030, underscoring the country's trajectory as a major global importer.

(With inputs from agencies.)