India Natural Gas Market - Strategic Insights and Forecasts (2026-2031)

The India Natural Gas Market is projected to register a strong Compound Annual Growth Rate (CAGR) during the forecast period of 2026-2031. This growth aligns with India's strategic goal of transitioning to a gas-based economy, aiming for natural gas to constitute approximately 15% of its energy mix by 2030, with demand expected to reach around 297 MMSCMD.

Demand for natural gas in India is primarily driven by consuming sectors such as power, fertiliser, City Gas Distribution (CGD), refinery, and petrochemicals. The Ministry of Petroleum and Natural Gas's 2025 allocation frameworks prioritize the fertiliser and CGD sectors, ensuring baseline demand stability and insulating core consumption from market volatility.

India exhibits high dependence on LNG imports to meet its natural gas demand, as domestic production only partially fulfills the total requirement (e.g., ~97.5 MMSCMD domestic production versus ~189 MMSCMD total demand in a recent period). LNG imports are critical, representing a significant portion of total supply, with continued reliance highlighted by regasification levels and new shipping agreements.

Rapid expansion of CGD and pipeline infrastructure is a key driver for market growth. Over 300+ geographical areas covering approximately 98% of the population have been authorized for CGD, complemented by a ~24,000 km pipeline network. This enhanced connectivity at the last-mile level enables a significant shift away from traditional industrial fuels.

More than 75% of India’s domestic natural gas production comes from offshore fields. Specifically, the western offshore basins are identified as the backbone of the country’s upstream gas output, playing a crucial role in contributing to the domestic supply base.

India is targeting a significant increase in natural gas consumption as part of its goal to become a gas-based economy, aiming for natural gas to constitute approximately 15% of its primary energy basket by 2030. This strategy forecasts overall demand to reach approximately 297 MMSCMD, driven by policy support and infrastructure development.