India Natural Gas Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 3.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
India Natural Gas Market Analysis
The India oil and gas market is expected to register a CAGR of more than 3% during the forecast period (2022-2027). The COVID-19 pandemic has negatively affected the market. The revenue of gas companies declined due to the unexpected lockdown. The demand for diesel, the most used fuel in the country, has fallen due to a significant reduction in traffic volumes on the roads. Factors such as the increasing natural gas pipeline capacity and the increasing demand for petroleum products are expected to drive the Indian natural gas market during the forecast period. However, significant dependence on imports of natural gas for satisfying domestic demand and high volatility is expected to hinder the growth of the market.
- The piped natural gas (PNG) sector has been growing considerably over the recent past, owing to the expansion of several city gas distribution (CGD) networks. Therefore, the industry is expected to witness growth during the forecast period.
- The initiative of Indian government to meet its target of reaching 15% natural gas in its energy basket mix by 2030, which is in 2021 at 6.2-6.5%, whereas the global average is 23-24%. This increase is expected to provide an opportunity for growth after the forecast period
- Due to the increase in gas imports, the Indian government is increasing its investments in oil and gas pipelines and LNG terminals. Therefore, the increasing investments are expected to drive the market.
India Natural Gas Market Trends
This section covers the major market trends shaping the India Natural Gas Market according to our research experts:
Piped Natural Gas (PNG) to Grow Significantly
- Under the Petroleum and Natural Gas Regulatory Board (PNGRB) Act 2006, PNGRB grants authorization to the entities for developing a City Gas Distribution (CGD) network (including PNG network) in a specified Geographical Area (GA) of the country. These entities have become the bulwark of the growing PNG sector in the country.
- In April 2022, Petroleum and Natural Gas Regulatory Board (PNGRB), in its 111th board meeting, approved the issuance of letters of intent (LoI) to the three successful entities for retailing compressed natural gas (CNG) to automobiles and piped natural gas (PNG) to households in five geographical areas (GAs), spread over 27 districts in five states.
- Further, increasing the distribution range and creating a gas-based economy is crucial for the government's "Atmanirbhar Bharat" program. Work is being done in the direction of 'One Nation, One Gas Grid.' This refers to integrating these regional grids and establishing a National Grid to provide gas to various stakeholders.
- Natural gas consumption in the country has been increasing yearly, even during the pandemic. It is estimated to be around 56.9 billion cubic meters in 2020, rising from 59.3 bcm in 2019.
- The pipeline grid is expected to help improve clean energy access and aid in developing city gas projects. Thereby aiding the growth of the piped natural gas market.
Increasing Investment in Pipelines to Drive the Market
- The pipeline is the most economical way of transporting natural gas over a long distance, and this is expected to increase due to rising investments in upcoming pipelines.
- In 2022, the Prime Minister of India announced that work is on to set up 16,000 km of new gas pipeline network in the country, and it is likely to be completed over the next four to six years.
- As of 2021, the Gas Authority of India Ltd (GAIL) had the largest share of the country's natural gas pipeline network, i.e., approximately 32,718 km.
- Moreover, the Indian government has an approved plan of USD 774 million for a natural gas pipeline in the northeast region as part of a national gas grid being built to span remote locations in the country. The 1,656 km pipeline is expected to cost up to INR 92.65 billion and will be completed by 2023.
- Natural gas consumption in the country has increased yearly, even during the pandemic. It is estimated to be around 23.8 billion cubic meters in 2020, rising from 26.9 bcm in 2019.
- Hence, increasing investments in the midstream sector have driven the Indian natural gas market. Pipeline coverage is expected to increase substantially during the forecast period, with the petroleum product pipeline expected to increase the most in the segment.
India Natural Gas Industry Overview
The India natural gas market is fragmented. The major players are Oil and Natural Gas Corporation, Reliance Industries, Indian Oil Corporation Limited, Adani Total Gas Limited and Punj Lloyd Limited.
India Natural Gas Market Leaders
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Oil and Natural Gas Corporation
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Reliance Industries
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Indian Oil Corporation Limited
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Adani Total Gas Limited
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Punj Lloyd Limited
*Disclaimer: Major Players sorted in no particular order
India Natural Gas Market News
- In January 2022, According to the results of the bid opening for the 11th round of city gas distribution (CGD) bidding, Indian Oil Corporation (IOC) stands to get nine licences and Bharat Petroleum Corporation Ltd (BPCL) 6.
- In May 2022, Adani Total Private Limited has withdrawn its EoI to build a natural gas pipeline from Haldia to Panitar following objections by Hiranandani Energy and others.
India Natural Gas Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast, in USD Billion
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
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4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.2 Restraints
- 4.6 Supply Chain Analysis
- 4.7 PESTLE Analysis
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Compressed Natural Gas
- 5.1.2 Piped Natural Gas
- 5.1.3 Liquified Petroleum Gas
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 Oil and Natural Gas Corporation
- 6.3.2 Reliance Industries
- 6.3.3 Indian Oil Corporation Limited
- 6.3.4 Adani Total Gas Limited
- 6.3.5 Punj Lloyd Limited
- 6.3.6 Indraprastha Gas Limited
- 6.3.7 Mahanagar Gas Limited
- 6.3.8 Vedanta Limited
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityIndia Natural Gas Industry Segmentation
The scope of India Natural Gas Market includes:
| Type | Compressed Natural Gas |
| Piped Natural Gas | |
| Liquified Petroleum Gas |
India Natural Gas Market Research FAQs
What is the current India Natural Gas Market size?
The India Natural Gas Market is projected to register a CAGR of greater than 3% during the forecast period (2024-2029)
Who are the key players in India Natural Gas Market?
Oil and Natural Gas Corporation, Reliance Industries, Indian Oil Corporation Limited, Adani Total Gas Limited and Punj Lloyd Limited are the major companies operating in the India Natural Gas Market.
What years does this India Natural Gas Market cover?
The report covers the India Natural Gas Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the India Natural Gas Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
India Natural Gas Industry Report
Statistics for the 2024 India Natural Gas market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India Natural Gas analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
