IEA Advocates Reforms to Boost India's Natural Gas Economy

The International Energy Agency urges India to liberalize its natural gas pricing and unbundle the marketing and transportation sectors to increase gas usage. India's gas consumption is projected to rise significantly by 2030, with policy reforms and infrastructure developments crucial for growth in the sector.

The International Energy Agency (IEA) has urged India to liberalize its natural gas pricing and unbundle the marketing and transportation sectors to foster increased usage of the fuel within the economy. This call to action was highlighted in the IEA's India Gas Market Report: Outlook to 2030, which projects a 60% rise in the country's gas consumption by the end of the decade.

Currently, India's gas pricing is skewed, with caps on prices from state-owned enterprises and high-cost fields. The IEA recommends transitioning to full gas pricing freedom, a move proposed by the Kirit Parekh Committee in 2022, to stimulate investment and improve gas availability for consumers. The report also suggests independent transmission operators and policy adjustments to ensure fair infrastructure access.

India's natural gas demand is at a pivotal growth stage as infrastructure expansions and policy directions come into play. By 2030, domestic gas production is expected to rise, but additional LNG imports will be necessary to meet demand. Strategic planning in LNG procurement and infrastructure is crucial as India aims to compete in a price-sensitive global market.