India Natural Gas Market is Expected to grow at a robust CAGR of 8.2% through 2030
The increasing India Natural Gas market
is driven by Infrastructure Development, Foreign Investments and LNG Imports during
the forecast period 2026-2030.
According to TechSci Research report, “India Natural Gas Market – By
Region, Competition, Forecast & Opportunities, 2020-2030F, The India Natural Gas Market was
valued at USD 16.9 Billion in 2024 and is expected to reach USD 27.36 Billion by
2030 with a CAGR of 8.2% during the forecast period. Government policy support
plays a critical role, with initiatives like the Pradhan Mantri Ujjwala Yojana
(PMUY) increasing LPG access for rural households, while the development of a
National Gas Grid enhances distribution capabilities. The government's commitment
to reducing carbon emissions by promoting natural gas over more polluting fuels
aligns with India’s clean energy transition.
Additionally, the rising industrial
demand is another key driver, as sectors like fertilizers, chemicals, and steel
increasingly adopt natural gas due to its cost-effectiveness and lower
environmental impact compared to coal. The industrial sector’s push towards
cleaner energy sources, along with the growing awareness of environmental
issues, particularly urban air pollution, is further accelerating the adoption
of natural gas. This preference for cleaner fuels is supported by both
government policies and consumer demand, enhancing natural gas's role in
India’s energy mix.
Browse over XX market data Figures
spread through XX Pages and an in-depth TOC on the " India
Natural Gas Market"
Based on Application, electric power
segment dominated in the India Natural Gas Market, in 2024, In 2024, the
electric power generation segment is expected to dominate the India natural gas
market, driven by the increasing demand for cleaner and more efficient sources
of energy. India’s growing population, rapid industrialization, and
urbanization have resulted in a significant rise in electricity consumption. As
the country aims to diversify its energy mix, natural gas is emerging as the
preferred fuel for power generation due to its relatively lower emissions
compared to coal, a traditional dominant fuel source in the country. The Indian
government’s commitment to reducing carbon emissions and its ambition to meet
climate change targets have led to an accelerated push toward cleaner energy
alternatives, making natural gas a key player in this transformation.
Government initiatives such as the
National Clean Energy Fund and the adoption of the National Gas Grid are key
drivers of growth in the electric power generation sector. The government has
also implemented policies to encourage the use of natural gas in power
generation through various incentives and regulatory measures. Additionally,
the availability of natural gas at competitive prices, primarily through
imports via LNG terminals and expanding pipeline networks, has helped make
natural gas a more attractive fuel option for power producers.
Natural gas-based power plants offer
several advantages over conventional coal-fired plants, including higher
efficiency, lower emissions of harmful pollutants, and reduced dependency on
coal, which is a major contributor to air pollution and environmental
degradation. This makes natural gas a crucial part of India’s strategy to
balance energy needs with environmental concerns. Moreover, combined cycle gas
turbine (CCGT) plants, which are becoming more prevalent in India, provide
superior efficiency and are increasingly being used in the country’s power
generation sector.
Another factor driving the dominance of
the electric power generation segment is the growing demand for peak power. As
renewable energy sources such as solar and wind are intermittent and cannot
provide constant power, natural gas plants are used as a backup to ensure grid
stability. Gas-fired plants can be ramped up quickly to meet demand during peak
periods, which is essential for grid reliability and supporting the increasing
integration of renewable energy. In this regard, natural gas is often seen as an
ideal solution to support the clean energy transition and ensure a stable and
reliable energy supply.
The growing adoption of natural gas in
the power sector is in line with India’s broader energy transition goals. The
government’s Ujjwala Yojana, which aims to provide cleaner cooking fuel to
households, and the expansion of city gas distribution (CGD) networks, have
also increased the demand for natural gas, further supporting its adoption in
power generation. With the expansion of LNG infrastructure and enhanced
connectivity between domestic production and international markets, natural gas
is expected to play an increasingly significant role in meeting India’s growing
electricity demand.
Additionally, the private sector’s
involvement in natural gas-based power generation is expanding. Companies such
as Reliance Industries, Indian Oil Corporation (IOC), and Adani Power are
making significant investments in natural gas-based power plants and LNG
infrastructure. These investments are poised to contribute to the sector’s
growth, helping India move towards its target of generating 50% of its
electricity from non-fossil fuel sources by 2030, as part of its commitment to
reducing greenhouse gas emissions.
The electric power generation segment is
set to dominate India’s natural gas market in 2024 due to the government's
strong support for clean energy, the increasing adoption of natural gas in
power generation, and the rising need for reliable, efficient, and
environmentally friendly energy solutions. This shift aligns with the country's
energy goals and will continue to drive the growth of natural gas in India’s
energy landscape.
Key market players in the India Natural
Gas market are: -
- GAIL (India) Limited
- Gujarat State Petronet Limited (GSPL)
- Indraprastha Gas Limited (IGL)
- Mahanagar Gas Limited (MGL)
- Oil and Natural Gas Corporation (ONGC)
- Oil India Limited (OIL)
- Reliance Industries Limited
- Cairn Oil & Gas vertical of Vedanta
Limited
- Essar Global Fund Limited
- Petronet LNG Limited (PLL)
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“The India natural gas market offers
several promising opportunities. One of the major opportunities lies in
small-scale LNG (liquefied natural gas) solutions, which are gaining traction
for providing natural gas to regions lacking pipeline access. These solutions
help expand the reach of natural gas to remote and underserved areas, enhancing
energy access. The government’s push for CNG adoption in vehicles presents
another significant opportunity, as cities with high air pollution levels are
increasingly shifting to compressed natural gas for transportation. Moreover,
renewable energy integration with natural gas is emerging as a key growth area,
where natural gas serves as a backup fuel for intermittent renewable sources
like solar and wind, ensuring grid stability. The growing demand for LNG
imports, driven by rising energy consumption and limited domestic production,
also presents opportunities for LNG terminals and import infrastructure
development. Lastly, as industries focus on cleaner energy, there are rising
prospects for natural gas in industrial applications like chemicals and cement
production.Top of Form” said
Mr. Karan Chechi, Research Director of TechSci Research, a research-based Global
management consulting firm.
“India Natural Gas Market Segmented By Type (Compressed Natural Gas, Piped
Natural Gas and Liquified Petroleum Gas), By Application (Industrial, Electric
Power, Transportation, Residential, Commercial, Others), By Region, Competition,
Forecast and Opportunities, 2020-2030F,”
has evaluated the future growth potential of India Natural Gas Market and
provides statistics & information on market size, structure, and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision makers take sound investment decisions. Besides the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in India Natural Gas Market.
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