India’s Natural Gas Demand Set to Soar by 2030 – Can It Fuel a Greener, Stronger Economy?
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India is on track to witness a dramatic surge in natural gas consumption by the year 2030, as the country accelerates efforts to transition toward cleaner energy sources. According to a top government official, India’s overall natural gas consumption is projected to reach 103 billion cubic meters (bcm) annually by 2030 — marking a near 60% increase from current levels.
With ambitious climate targets and an urgent need to reduce dependency on coal, natural gas is being positioned as a critical “bridge fuel” in India’s journey toward net-zero emissions by 2070. However, experts caution that to truly unlock the potential of natural gas, India must focus on rapid infrastructure development, policy innovation, and market reforms.
Natural Gas: The Bridge Fuel to India’s Energy Transition
Speaking at an event hosted by the Chintan Research Foundation (CRF), Praveen Mal Khanooja, Additional Secretary in the Ministry of Petroleum and Natural Gas, laid out the vision for India’s gas-led transition. He noted that with accelerated policy support — such as faster rollout of city gas distribution (CGD) networks, promotion of LNG-based transport, and higher usage of gas-fired power plants — natural gas demand could even exceed 120 bcm per year by 2030, aligning with South America’s current consumption levels.
“Gas is globally recognised as a cleaner fossil fuel that can support a smoother shift away from coal and other high-emission fuels,” Khanooja said. “While green hydrogen, coal-bed methane, and biogas are emerging, regasified LNG remains our most practical option for now.”
India’s current share of gas in the primary energy mix stands at 6.8%, far from the government's target of 15% by 2030. If the country continues under a business-as-usual scenario, recent reports, including the IEA’s India Gas Market Report, suggest that this share may only reach 8-9% — unless bold measures are taken.
Crucial Challenges on the Road Ahead
To even reach a 10% gas share in the energy mix, India must tackle several critical bottlenecks:
- Infrastructure gaps in LNG terminals, pipelines, and storage
- Slow adoption in transportation and industrial sectors
- Lack of awareness in remote and rural regions
- Global market dependence for gas imports
- Pricing inefficiencies and limited market competition
In response, the Ministry of Petroleum and Natural Gas has released an updated forecast under the India Gas Vision programme, highlighting expected demand growth across transport, industry, households, and power sectors.
Lessons from China: LNG for Transport
One of the biggest opportunities for natural gas adoption lies in transportation, particularly long-haul trucking. Suresh P. Manglani, CEO of Adani Total Gas Limited (ATGL), stressed the importance of learning from global leaders like China.
“If you look at China, their investment in LNG-based transport is massive,” he said. “They’re using LNG to power trucks and freight, significantly reducing diesel use. India must adopt a similar strategy if we are serious about phasing out high-speed diesel (HSD) in logistics.”
Manglani proposed the deployment of 300 LNG stations across 30–35 major logistics hubs to begin addressing conventional transport demand. However, he also urged the government and private sector to think bigger.
“We must move beyond just trucks. We need to encourage entrepreneurship in emerging gas use-cases—from industrial clusters and remote regions to smart cities and decentralized power,” Manglani noted.
Unlocking Economic Growth with Efficient Logistics
Manglani also highlighted how the implementation of the Goods and Services Tax (GST) has created a unified national market — a significant advantage for streamlining logistics. “Now, we need to build on this momentum. Better logistics, cleaner fuels, and easier access to energy can significantly lower costs for businesses and benefit the end consumer.”
Building a Strong, Independent Gas Market
India must also focus on developing a self-sustaining domestic gas market to support long-term energy security. Rajesh Kumar Mediratta, Managing Director and CEO of the Indian Gas Exchange (IGX), said that India’s growing demand can position it as a major global player.
“With this level of demand, we should aim to negotiate long-term gas contracts directly, instead of relying on middlemen or the volatile spot market,” he emphasized. “India has the potential to be one of the largest gas demand centers in Asia, possibly surpassing Japan and South Korea.”
Mediratta also called for the expansion of the Indian Gas Exchange, where transparent pricing and competitive bidding can help bring down costs and attract investment in the gas sector.
The Strategic Role of LNG Imports
As of now, India relies heavily on imported LNG, which makes it vulnerable to international price fluctuations. Still, regasified LNG remains the backbone of India’s gas expansion strategy until domestic production scales up and alternative fuels like green hydrogen become viable at scale.
That said, the long-term goal must be to diversify sources, expand domestic gas exploration, and balance imports through smarter contracts.
How Can India Meet Its 2030 Gas Target?
Achieving the ambitious target of 103–120 bcm annual gas consumption by 2030 will require synchronized action across multiple fronts:
- Speed up CGD rollouts in both urban and semi-urban areas
- Incentivize LNG adoption in heavy-duty transport and fleet services
- Build new LNG import terminals and pipeline networks
- Encourage gas-based power generation with policy support
- Promote gas usage in industrial hubs like cement, ceramics, and steel
- Train a skilled workforce for handling gas-related infrastructure
- Ensure transparent pricing and build confidence in market mechanisms
Natural Gas and India’s Green Commitments
India has pledged to achieve net-zero carbon emissions by 2070. To get there, the country needs a phased transition from coal to renewables, and natural gas can help bridge that gap in the medium term.
Compared to coal and diesel, gas emits significantly less carbon and particulate matter. It’s flexible, reliable, and compatible with existing technologies — making it a strategic ally for India’s green transformation.
Final Thoughts from The Trending People
India stands at a historic crossroads. With rising energy needs, climate responsibilities, and economic ambitions, the choices we make today will define the country’s future.
Natural gas is not just a cleaner fuel — it’s a smarter fuel. It offers India the chance to power industries, clean up transportation, and reduce air pollution — all while growing the economy. But this won’t happen automatically. It will require bold policy action, public-private collaboration, and clear long-term thinking.
At TheTrendingPeople.com, we believe that India's energy future must be clean, affordable, and inclusive. The rising demand for natural gas signals both a challenge and an opportunity. If we act decisively now, we can lay the foundation for a future where India leads the way in sustainable development, energy innovation, and global climate leadership.
