According to the International Energy Agency (IEA), India’s annual gas consumption is expected to increase by 25 billion cubic metres in the 2020-2024 period which translates into a 9 per cent annual average growth rate. IEA also noted that India is set to emerge as the second-largest driver of gas demand in Asia (after China) and the fifth-largest contributor globally (after China, Iran, Russia and the United States).
India has plans to increase the share of gas in its energy basket to 15 per cent by 2030 from the current level of 6 per cent. Demand for the natural gas in the domestic market is traditionally dependent on the fertiliser (28 per cent), power (23 per cent), city gas distribution entities (16 per cent), refineries (12 per cent) and petrochemicals industries (8 per cent). Meanwhile, almost two-third of India’s 2020-2024 demand expansion is expected to come primarily from substitution of liquid fuels to gas.