India’s natural gas demand to rise 60% by 2030
Published on: Feb 14, 2025
New IEA analysis shows India's gas market is at an inflection point as infrastructure expansion and policy support drive unprecedented growth in consumption
India's natural gas demand is forecast to increase by nearly 60% by 2030, a new IEA report finds, marking a significant shift in the country's energy landscape and putting India’s projected gas demand on a par with some of the world’s largest consumers.
The report shows the country’s gas consumption is set to reach 103 billion cubic meters (bcm) annually by the end of the decade. Following over a decade of slow growth and periodic declines, India’s natural gas demand increased by more than 10% in both 2023 and 2024. While total gas consumption in 2023 was only marginally higher than 2011 levels, three key factors are now converging to drive substantial growth: rapid infrastructure expansion, recovering domestic production, and an expected easing of global gas market conditions.
"India's gas market is entering a new phase of growth, supported by significant infrastructure development and clear policy direction," said IEA Director of Energy Markets and Security Keisuke Sadamori.
Infrastructure development is playing a crucial role in enabling market growth. Since 2019, India has almost quadrupled its number of CNG stations and more than doubled the number of residential gas connections, while extending its transmission pipeline network by 40%. By 2030, the number of CNG stations and residential connections is expected to nearly double again, with the gas transmission grid expanding by an additional 50%.
India’s domestic gas production, which met 50% of demand in 2023, is projected to grow gradually, reaching just under 38 bcm by 2030.
India is looking to increase the share of gas in its energy mix and the report identifies potential for even higher growth under an accelerated scenario. This scenario would require additional policy support to drive higher utilisation of gas-fired power plants, faster adoption of LNG in heavy-duty transport, and more rapid expansion of city gas infrastructure.
