India is set to more than double its liquefied natural gas (LNG) imports by 2030, according to a recent report from the International Energy Agency (IEA). The country’s LNG demand is expected to grow from 36 billion cubic meters (bcm) last year to 64 bcm by the end of the decade, with an annual growth rate of 11%.
The increase in LNG imports is driven by ongoing infrastructure expansion and a modest rise in domestic gas production. Keisuke Sadamori, IEA’s Director of Energy Markets and Security, emphasized that India’s gas market is entering a new phase of growth, backed by significant infrastructure development and strong policy support.
While India’s rising gas demand aligns with an expected boost in global LNG supply, Sadamori noted the need for careful planning and coordination to ensure reliable supply and help gas remain competitive in a price-sensitive market.
Local gas production, which had stagnated for a decade, is now seeing some improvements, though it is expected to rise only 8% by 2030, largely due to the aging of existing fields.
Prime Minister Narendra Modi has set an ambitious target to increase the share of gas in India’s energy mix from 6% to 15% by 2030, in line with the country’s rapidly growing energy demands. However, the IEA points out that affordability and supply security have often taken priority over gas development, limiting its pace in keeping up with the overall energy demand.
A lack of pipeline infrastructure has also hindered the growth of gas consumption. Nonetheless, gas is expected to play a larger role in India’s energy mix as pricing improves and infrastructure expands.
The IEA projects that total gas consumption in India will grow by 60% to 103 bcm by 2030. With targeted infrastructure and policy measures, along with affordable pricing, consumption could potentially reach 120 bcm.
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