India is on track to more than double its liquefied natural gas (LNG) imports by 2030, according to new report from the International Energy Agency (IEA).
The country’s demand for LNG is expected to surge from 36 billion cubic metres (bcm) in the previous year to 64bcm by 2030, at an annual growth rate of 11% until the end of the decade.
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The anticipated growth in India’s LNG imports is attributed to an infrastructure expansion and a modest increase in domestic production.
IEA Energy Markets and Security director Keisuke Sadamori said: “India’s gas market is entering a new phase of growth, supported by significant infrastructure development and clear policy direction.
“The prospect of higher gas demand in India coincides with an expected wave of new global LNG supply. However, it will require careful planning and market coordination to ensure supply security and to help gas to compete in a price-sensitive market.”
The IEA findings suggest that despite a decade of stagnation, local production has seen improvements, although it will be just 8% above the previous year’s levels by 2030 due to ageing fields.
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By GlobalDataPrime Minister Narendra Modi has set an ambitious target to raise the share of gas in India’s energy mix from the current 6% to 15% by 2030.
This goal aligns with the country’s broader demand for energy, which has been growing rapidly.
However, the IEA notes that affordability and security have been prioritised over gas, which has not kept pace with the overall energy demand growth.
The IEA also highlighted that a lack of pipelines has been a significant barrier to the growth of gas consumption.
Gas is expected to play a larger role in the energy mix with better pricing and infrastructure improvements.
Total gas consumption in India is projected to increase by approximately 60% to 103bcm by 2030.
With targeted infrastructure and policy interventions, as well as affordable pricing, consumption could potentially reach around 120bcm.
