Press Release

Demand for LNG in India to Grow at around 17% until 2025

Widening demand-supply gap for natural gas is boosting demand for liquefied natural gas (LNG) in India

According to a recently published TechSci Research report India LNG Market Forecast and Opportunities, 2025, India’s LNG demand is anticipated to increase from 64 mmscmd in 2015 to 306.54 mmscmd by 2025, registering a CAGR of 16.89% during 2015 - 2025. As of 2025, India’s natural gas pipeline infrastructure stood at 15,808 km and an additional 11,397 km of pipelines are expected to be added over the next few years. Government Gas Allocation Policy have been implemented to address demand for natural gas across various end user industries, classified on the basis of needs as City Gas Distribution for households, transport, fertilizers sector (urea plant), power plants and industrial sectors.

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Power sector is the leading end user of natural gas in India and consumes nearly one-third of the total natural gas produced in the country. Moreover, government is increasing its focus on gas based power projects due to their high efficiency, low gestation period, environmental factors, and requirement of less water and land compared to other fuel based power plants. Various other policies such as recent updates in “Gas Allocation Policy” have also been implemented to encourage use of gas in different end-user segments. Other policies that are expected to have a positive impact on the country’s LNG market include E-bid RLNG for smoothening the supply of imported spot RLNG to power plants and fertilizer industries.  

“Increasing focus on expansion of gas pipeline infrastructure in the country, rising demand for natural gas from power and industrial sectors and favorable government policies makes LNG a commercially viable and suitable fuel for various end user in India. As a result, LNG demand is forecast to witness robust growth over the next 5-10 years.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

India LNG Market Forecast and Opportunities, 2025has evaluated the LNG demand outlook in India and provides statistics and information on market structure, industry behavior and trends. The report includes market projections and demand forecasting. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. Besides, the report also identifies and analyzes emerging trends along with essential drivers, challenges and opportunities available in LNG market in India.

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