With government’s plans to boost natural gas production by providing incentives for exploration can help in driving the market for LNG in India

Favorable policy by the government can help to reduce the demand supply gap of natural gas in India

India: Finance minister of India Mr. Arun Jaitley during a speech announcing annual budget on Monday said that the government of India is contemplating to provide incentives to gas production from unexplored sources such as deep water, ultra-deep water and high pressure and high-temperature area. India currently imports 45% of the gas which it consumes and the government intends to ramp up the domestic gas production.

TechSci Research finds out that the low domestic production of natural gas coupled with increasing demand from the key end users has widened the demand supply gap in India. The demand for cleaner fuel in India is increasing due to environmental concerns as natural gas is clean source of energy. With the expansion in the end users such as power sector, chemical sector, city gas distribution, etc. the demand of natural gas is going to increase. The move envisaged by the government will be helpful in discovery and exploitation of gas reserves of the country.

According to released report of TechSci Research “India LNG Market Forecast & Opportunities, 2025”, the natural gas market in India is projected to reach 598 Million Metric Standard Cubic Meter per Day MMSCMD by 2025. The growth shall be coupled with expansion in the gas transportation network in the country and the increase in domestic production of natural gas can be traded by a robust pipeline network in the country.