India’s Gas demand to surge 60% by 2030, says IEA at IEW 2025
India’s natural gas sector has reached a turning point, with consumption projected to rise nearly 60% to 103 billion cubic meters (bcm) annually by 2030, according to the International Energy Agency (IEA). The findings were presented on the second day of **India Energy Week (IEW) 2025**, as part of the agency’s **India Gas Market Report**. This surge would bring India’s gas consumption in line with present-day Saudi Arabia.
Following a decade of sluggish growth and periodic declines, India’s natural gas demand rose by over 10% in both 2023 and 2024, signaling a strong upward trajectory. The report attributes this sharp increase to the expansion of India’s gas infrastructure, a rebound in domestic gas production, and easing global gas market conditions. Supportive government policies have played a crucial role in creating a favorable environment for this growth, ensuring steady consumption through 2030.
The city gas distribution (CGD) sector is set to drive demand, fueled by rapid expansion in compressed natural gas (CNG) infrastructure and the cost advantage of gas over liquid fuels for small industries. Additionally, heavy industries—including iron and steel manufacturing—are expected to contribute 15 bcm annually, while oil refining could add over 4 bcm per year as more refineries integrate with the gas grid.
With targeted policies and faster adoption of LNG in heavy transport and gas-fired power plants, India’s gas consumption could potentially reach 120 bcm annually by 2030, comparable to South America’s current levels. While domestic production—meeting 50% of demand in 2023—is expected to grow moderately, LNG imports are projected to double, reaching 64 bcm per year by 2030. This would cement India’s position as the world’s fourth-largest LNG importer.
IEA Director of Energy Markets and Security Keisuke Sadamori highlighted the need for careful planning and market coordination to maintain supply security. “India’s gas market is entering a new phase of growth, backed by significant infrastructure development and policy support,” he said. “However, securing long-term LNG contracts will be essential as legacy agreements expire after 2028, to avoid exposure to market volatility.”
As India’s gas sector evolves, strategic planning in LNG procurement and import infrastructure will be crucial to sustaining this momentum and ensuring a stable energy supply in a price-sensitive market.
