(MENAFN- KNN India)
New Delhi, Nov 2 (KNN)
India's natural gas consumption is projected to reach 113.7 billion cubic metres (bcm) by 2040, nearly doubling from 65 bcm in 2023, according to research by Rystad Energy.
This substantial growth is attributed to the nation's expanding population, accelerating economic development, and increasing shift toward cleaner energy sources.
Despite a significant 51 percent increase in domestic gas production since 2020, reaching 36.7 BCM by 2025, domestic supply will fall short of meeting the growing demand.
As the world's fourth-largest liquefied natural gas (LNG) importer, India currently relies on imports for approximately half of its natural gas requirements, a dependency that is expected to continue.
Kaushal Ramesh, Vice President, Gas & LNG Research at Rystad Energy, highlights potential opportunities with Middle Eastern producers.
The region's geographical proximity and substantial uncontracted LNG production, estimated at nearly 100 million tonnes per annum (mtpa) by 2035, presents favourable conditions for securing India's future energy needs.
The surge in demand is driven by multiple sectors, particularly the expanding city gas distribution (CGD) network and the fertiliser industry.
India's urea production, heavily dependent on natural gas, reached 30 million tonnes in 2023 but still fell short of the 35 million tonnes demand, indicating room for growth.
Additionally, the country's refining capacity is expected to expand to 335 mtpa by 2030, with many facilities planned near LNG terminals.
The CGD network has shown remarkable growth, with CNG stations increasing more than fivefold since 2015 to 5,710 stations by April 2023.
Similarly, piped natural gas (PNG) connections have quadrupled to 12 million during the same period.
Following recent CGD bidding rounds, the network is anticipated to cover almost the entire geographical area of India, serving its population of over 1.4 billion people.
(KNN Bureau)
MENAFN02112024000155011030ID1108844253
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.