India Natural Gas Market Size (2024 - 2029)

India Natural Gas Market Size Summary

The natural gas market in India is poised for growth, driven by increasing pipeline capacity and a rising demand for petroleum products. Despite the challenges posed by the COVID-19 pandemic, which led to a decline in revenue for gas companies and reduced diesel demand, the market is expected to recover. The expansion of city gas distribution networks and the government's initiative to increase the share of natural gas in the energy mix to 15% by 2030 are key factors supporting this growth. However, the market faces hurdles due to its significant reliance on imported natural gas and the inherent volatility in global markets. The government's focus on developing a national gas grid and enhancing infrastructure investments in oil and gas pipelines and LNG terminals is expected to further bolster the sector.

The Indian natural gas market is characterized by a fragmented landscape with major players such as Oil and Natural Gas Corporation, Reliance Industries, and Indian Oil Corporation Limited. The government's efforts to integrate regional grids into a national network under the "One Nation, One Gas Grid" initiative are crucial for creating a gas-based economy. The pipeline infrastructure, being the most economical means of transporting natural gas over long distances, is set to expand significantly, with plans for new pipelines and increased coverage. This expansion is supported by substantial investments, including a notable plan for a natural gas pipeline in the northeast region. The growth in the midstream sector, alongside the development of city gas projects, is expected to enhance clean energy access and drive the market forward.