Natural gas consumption in India likely to reach 103 bcm per year by 2030: Top govt official

Hans India

24-07-2025

New Delhi: Overall natural gas consumption in India is estimated to reach 103 billion cubic meters (bcm) per year by 2030, representing a near 60 per cent increase from current levels, a top government official said here on Thursday.
In his address at an event, organised by the Chintan Research Foundation (CRF), Praveen Mal Khanooja, Additional Secretary, Ministry of Petroleum and Natural Gas, said that under the accelerated policy support (faster CGD rollout, LNG adoption in transport, higher gas-fired power plant utilisation), demand could rise to 120 bcm per year by 2030, approaching South America's current consumption.
India has committed to achieving net-zero emissions by 2070. A crucial component of this transition is the strategic use of gas as a bridge fuel, enabling a phased shift from carbon-heavy fuels like coal to a low-carbon future.
"With relatively lower carbon and particulate emissions, gas has been recognised and used globally as a fossil fuel that can securely bridge the energy transition. Although green hydrogen, compressed biogas and coal-bed methane are emerging, India remains largely dependent on regasified LNG as the primary means to grow the share of gas in her energy mix," Khanooja told the gathering.
The share of gas in India's primary energy mix is 6.8 per cent -- well below the 15 per cent target set for 2030. Recent analysis, including from the IEA's 'India Gas Market Report', suggests that under business-as-usual conditions, India may only achieve an 8-9 per cent share by 2030.
To significantly expand the gas consumption and mark even a 10 per cent share in the energy mix, India must address critical challenges. The Ministry of Petroleum and Natural Gas released an updated demand forecast for the 'India Gas Vision' programme, showing rapid growth across key sectors fuelled by infrastructure scale-up and policy reforms.
Suresh P. Manglani, Executive Director and Chief Executive Officer of Adani Total Gas Limited (ATGL), said that they are closely observing what China is doing.
"If you visit there, you can clearly see how aggressively China is promoting LNG for transportation — especially for trucks and long-haul freight movement. If India is serious about moving away from high-speed diesel (HSD), we need to consider similar strategies. Even if we assume an incremental demand of 70 to 200 million cubic meters of LNG, and distribute around 300 LNG stations across 30 to 35 logistics hubs, it will still only cover the conventional demand segment," Manglani highlighted.
"But we must look beyond that. We should actively encourage entrepreneurship focused on non-conventional uses of natural gas — whether in industrial clusters, remote regions, or emerging sectors. We already have several such opportunities spread across the country," he emphasised.
The implementation of GST has already helped India become a single, unified market.
"Now we must build on that momentum to streamline transportation, enhance logistics efficiency, and create a more business-friendly ecosystem that ultimately benefits both the economy and the end consumer," said Manglani.
Rajesh Kumar Mediratta, Managing Director and CEO of Indian Gas Exchange(IGX), said that we must aim to build our own robust and self-sustaining gas market.
"India has the potential to become one of the largest demand centres in Asia — comparable to, or even exceeding, countries like Japan and South Korea. With this scale of demand, we should be in a position to negotiate global contracts more confidently, on our own terms, rather than relying heavily on intermediaries or spot markets," he stressed.