India’s Natural Gas demand poised for a 60% surge by 2030, says IEA
India’s natural gas consumption is projected to climb nearly 60% by 2030, reaching 103 billion cubic meters (bcm) annually, according to the latest India Gas Market Report from the International Energy Agency (IEA). This would place the country’s gas consumption on par with current levels in Saudi Arabia.
After more than a decade of sluggish growth and occasional declines, India’s natural gas demand saw a sharp rebound, rising by over 10% in both 2023 and 2024. This shift marks a critical turning point for the sector, driven by a combination of infrastructure expansion, increased domestic production, and improved global gas market conditions. Government policies have also played a key role in fostering a supportive environment for growth.
The city gas distribution (CGD) sector is expected to be a major force behind rising demand, propelled by the rapid expansion of compressed natural gas (CNG) networks and the cost advantage of gas over liquid fuels for small industries. Heavy industries, including iron and steel manufacturing, are projected to add around 15 bcm annually to demand, while gas consumption in oil refining is expected to grow by more than 4 bcm per year as more refineries integrate with the gas grid.
The IEA suggests that with further policy support and strategic initiatives, India’s gas consumption could climb even higher—potentially reaching 120 bcm annually by 2030, bringing it closer to South America’s current levels. Achieving this would require increased reliance on gas-fired power plants, wider LNG adoption in heavy transport, and further expansion of the CGD network.
While domestic gas production met 50% of India’s demand in 2023 and is set for moderate growth, the country’s LNG imports are projected to more than double, reaching 64 bcm annually by 2030. This would solidify India’s position as the world’s fourth-largest LNG importer and strengthen its influence in the global gas market.
“India’s gas market is entering a transformative phase, underpinned by large-scale infrastructure developments and a clear policy direction,” said Keisuke Sadamori, IEA’s Director of Energy Markets and Security. “With a wave of new global LNG supply expected, India must carefully navigate supply security and pricing challenges to sustain growth in this price-sensitive market.”
The report also highlights the need for strategic LNG procurement planning. With several long-term contracts set to expire after 2028, India risks increased exposure to spot market volatility unless new agreements are secured, ensuring stable supply in the years ahead.
