India's natural gas consumption to more than double by 2040: Petroleum and Natural Gas Regulatory Board (PNGRB) study

India’s natural gas consumption is projected to rise by nearly 60% by 2030 and more than double by 2040, driven by increased usage in city gas distribution, transportation, and industrial sectors. According to a study by the Petroleum and Natural Gas Regulatory Board (PNGRB), consumption is expected to grow from 187 million standard cubic metres per day (mmscmd) in 2023-24 to 297 mmscmd by 2030 and 496 mmscmd by 2040 under the ‘Good-to-Go’ scenario, which reflects moderate growth based on current policies. Under a more optimistic ‘Good-to-Best’ scenario, natural gas usage could reach 365 mmscmd by 2030 and 630 mmscmd by 2040.
City Gas Distribution (CGD)—covering compressed natural gas (CNG) for vehicles and piped natural gas for households and industries, will become the primary demand driver, contributing 87 mmscmd by 2030 and 129 mmscmd by 2040 under the base case. CGD is set to account for 29% of total demand in 2030 and 44% by 2040. The government aims to raise natural gas’s share in the energy mix from 7% to 15% by 2030 to support the net zero target by 2070. Fertiliser consumption is expected to rise modestly from 58 mmscmd in 2023-24 to 72.9 mmscmd by 2040, while gas use in refineries and petrochemicals could nearly double to 43.3 mmscmd by 2030. With India meeting half its gas needs through imports, liquefied natural gas (LNG) demand is also projected to more than double by 2030. LNG trucking is anticipated to gain traction post-2030, offering an alternative to diesel and echoing China’s success in decarbonising long-haul transport.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.