India's natural gas consumption to rise 60% by 2030: Oil regulator Petroleum and Natural Gas Regulatory Board (PNGRB)

India’s natural gas consumption is projected to grow by nearly 60% by 2030, reaching 297 million standard cubic metres per day (mmscmd), up from 188 mmscmd in FY24, according to a study by the Petroleum and Natural Gas Regulatory Board (PNGRB). This growth will be driven primarily by higher usage in city gas distribution (CGD), which supplies compressed natural gas (CNG) for vehicles and piped natural gas (PNG) for households and industries. Under the ‘Good-to-Go’ scenario, which assumes moderate policy progress, consumption may reach 496 mmscmd by 2040. In a more optimistic ‘Good-to-Best’ scenario, where policies and investments accelerate, usage may hit 365 mmscmd by 2030 and 630 mmscmd by 2040. 

The CGD segment is expected to be the anchor demand, contributing 50 mmscmd out of 110 mmscmd incremental demand by 2030 and 129 mmscmd out of 198 mmscmd between 2030 and 2040. From a base of 37 mmscmd in FY24, CGD consumption is forecasted to grow 2.5–3.5 times by 2030 and up to seven times thereafter. Other sectors, such as petrochemicals and refineries, are projected to contribute 21 mmscmd by 2030 and 10 mmscmd by 2040. Power and fertiliser sectors are also set to grow moderately. With domestic production lagging, India – which currently imports about 50% of its gas – is expected to double its liquefied natural gas (LNG) imports by 2030. LNG is also expected to emerge as a long-haul transport fuel post-2030, potentially reducing diesel use significantly, similar to China's model. Achieving these targets will require continued infrastructure investment, supportive policies, and stable global LNG prices. Natural gas consumption has grown 45% from 131 mmscmd in FY16 to 188 mmscmd in FY24. 

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