India's Natural Gas Demand Could Nearly Double By 2030, Says Regulatory Body Chief

India’s natural gas demand could rise from 190 million standard cubic meters per day to as much as 365 MMSCMD by 2030 if policy support, infrastructure expansion, and investments remain favourable, Petroleum and Natural Gas Regulatory Board chairperson Anil Kumar Jain said on Wednesday.

Speaking at the PNGRB national conclave in Gandhinagar, Jain highlighted that city gas distribution will be the primary driver of this growth. The board has granted licenses for CGD expansion, targeting 17,000 compressed natural gas stations and 12 crore domestic pipeline connections by 2030.

He noted that 10,000 km of pipelines have been authorised at a cost of Rs 3-5 crore per km, requiring investments of Rs 40,000-50,000 crore in the next three to five years. An additional Rs 30,000 crore has been committed for city gas distribution, estimated at Rs 400 crore per district.

Jain acknowledged key challenges, including volatile gas prices and the exclusion of natural gas from the Goods and Services Tax regime. He urged states to lower taxes on gas, calling it a cleaner alternative to conventional fuels.

A PNGRB report on India’s natural gas demand projections estimates consumption will reach 297 MMSCMD by 2030 under a moderate growth scenario and 495 MMSCMD by 2040. Under a high-growth scenario, consumption could hit 365 MMSCMD by 2030 and 630 MMSCMD by 2040.

The report sees CGD infrastructure as a critical enabler, predicting 2.5 to 3.5 times growth in the sector by 2030. LNG adoption for long-haul transport is expected to play a major role in reducing diesel dependency. While power generation and fertiliser demand are projected to grow at a moderate pace, refinery and petrochemical demand is expected to provide a fresh growth avenue.

The two-day conclave includes discussions on energy security, infrastructure modernisation, and policy frameworks for a cleaner energy future.

(With PTI inputs)