City Gas Distribution Set to Overtake Fertilizer Sector in India's Natural Gas Consumption

India's City Gas Distribution sector is poised to surpass the fertilizer industry as the largest consumer of natural gas, driven by rapid growth in CNG and piped gas networks. Domestic production is insufficient, making imports crucial. Infrastructure expansion continues, with significant developments like the Kochi to Bengaluru pipeline projected by 2025.

The City Gas Distribution (CGD) sector in India is on track to become the largest consumer of natural gas this year, overtaking the fertilizer industry. This growth is attributed to the rapid expansion of Compressed Natural Gas (CNG) and piped gas networks across the nation, experts revealed during a recent industry conference.

Currently, CGD accounts for 21.22% of the nearly 200 million standard cubic meters per day of gas consumption in India. Industry leaders project that consumption in this sector could reach 100 mmscmd by 2025, as natural gas demand in India is expected to rise significantly over the next decade.

Despite the promising growth, domestic natural gas production remains insufficient to meet the increasing demand, with imports of liquefied natural gas (LNG) filling the gap. In response, infrastructure developments like the Kochi to Bengaluru pipeline are underway, aiming to enhance the utilization of import facilities like Petronet LNG's terminals.

(With inputs from agencies.)