Tag: INDIA GAS MARKET REPORT: OUTLOOK TO 2030

The International Energy Agency (IEA) released the "India Gas Market Report: Outlook to 2030", highlighting India’s ambition to increase the share of natural gas in its energy mix to 15% by 2030, up from 6% today. Key Findings: India’s Gas Consumption: Expected to grow by 60% by 2030. City Gas Distribution (CGD) sector will be the primary driver of demand. CGD supplies natural gas to households, industries, and vehicles through pipelines. India’s Gas Production: 35 billion cubic meters (bcm) in 2023. The Krishna-Godavari deepwater fields contribute 25% of total output. Imports: India is the 4th largest LNG importer globally. LNG imports are expected to more than double by 2030. Compressed Biogas (CBG): Largely untapped potential, with current capacity less than 1% of total potential. Challenges in India's Gas Sector: Pricing Issues: Legacy fields have gas price caps (~USD 10 per MMBtu), restricting full price discovery. Deepwater fields face additional pricing restrictions, limiting investment. Market Monopolization: State-owned GAIL dominates both gas marketing and pipeline transmission, leading to conflicts of interest. Storage & Infrastructure Limitations: No underground gas storage (UGS) Limited LNG storage capacity, creating supply risks. Policy Recommendations by IEA: Liberalizing Gas Pricing: Extend pricing freedom to all fields, as recommended by the Kirit Parekh Committee (2022). Remove price ceilings for deepwater and ultra-deepwater projects. Market Reforms: Establish independent gas transmission system operators (TSOs) to ensure fair access to pipelines. Promote the Indian Gas Exchange (IGX) for efficient price discovery. Infrastructure Development: Harmonize taxation across competing fuels (e.g., coal vs. natural gas). Develop Strategic Gas Reserves for energy security. Enable transparent third-party access to infrastructure. The IEA’s report highlights the urgent need for reforms in India’s gas sector to achieve the 15% natural gas target by 2030. Liberalized pricing, infrastructure expansion, and market reforms will be key enablers for India's transition to a cleaner and more resilient energy system.

Tag: INDIA GAS MARKET REPORT: OUTLOOK TO 2030

INDIA GAS MARKET REPORT: OUTLOOK TO 2030

Let's Crack
APSC Together

Quick Links

Newsletter

Subscribe for Updates

Let's Crack APSC Together

Quick Links

Newsletter

Subscribe for Updates

Let's Crack
APSC Together