India Natural Gas Market is
anticipated to grow at a steady pace in the forecast period, 2024-2029. Natural
gas demand in India is being driven by factors like low cost of gas and growing
concerns over greenhouse gas emissions. By implementing new price guidelines
for companies producing nationally, the government is encouraging the
production of natural gas in India. Additionally, the government is promoting
the extraction from unconventional resources including shale gas and coalbed
methane (CBM). The pipeline network is quickly growing, and more pipes are
expected to be put into service during the next five years. For instance, the
Indian government has taken the effort to accomplish its goal of 15% natural
gas in its energy basket mix by 2030, which was at 6.2–6.6% in 2021, compared
to the global average of 23-24%. After the forecast period, it is anticipated
that this increase will present a growth opportunity in the India Natural Gas
Market.
Natural gas is used mostly in
the commercial sector to heat buildings and water. Natural gas
additionally serves as a fuel for some business applications' combined heat and
power systems. Methane (CH4) makes up the majority of the odorless, gaseous
combination of hydrocarbons that is natural gas. A little over 40% of the fuel
is used to generate electricity, with the remainder going to industrial,
household, and commercial applications including cooking and heating. Only
approximately 2% of natural gas is used as a fuel for transportation, even
though it is a tried-and-true alternative fuel that has long been used to power
natural gas vehicles.
Increasing Investment in
Pipelines to Drive the Market
The pipeline is currently the
most cost-effective method of moving natural gas across vast distances and due
to these increasing investments, the new pipeline systems are gaining
attention. For instance, the construction of a new 16,000-kilometer gas
pipeline network in India began in 2022 and is anticipated to be finished in
the following four to six years. As of 2021, according to the prime minister of
India, the Gas Authority of India Ltd (GAIL) controlled the widely held 32,718
km-long natural gas pipeline network and these investment in networking of
these pipeline is growing rapidly.
Additionally, the Indian
government has a plan approved for USD 774 million for a natural gas pipeline
in the northeastern region as a component of a national gas grid being
constructed to connect distant parts of the nation. The 1,656 km pipeline is
anticipated to be finished in 2023 and cost up to USD 1.13 billion. Even
throughout the pandemic, the country's natural gas usage has risen. It is
predicted to increase from 26.9 billion cubic meters in 2019 to roughly 23.8
billion cubic meters in 2020. Thus, the India natural gas market has been
pushed by rising midstream investments. During the forecast period, pipeline
coverage is also estimated to rise significantly, with the pipeline for
petroleum products likely to grow the most in the nation. Due to the increasing
investment in pipelines people are moving towards natural gas consumption,
hence the India Natural Gas market is expected to grow in the future period.
Government Initiatives Booming
the Market Growth
According to Dharmendra Pradhan,
the Union Minister of Petroleum, Natural Gas, and Steel, the federal government
intends to invest USD 60 billion over the next four years to build a gas
infrastructure in India, including LNG facilities and gas pipelines. The Prime
Minister set the goal of "One nation, One Gas Grid" in 2021. A new
17000 km gas pipeline would bring India's natural gas grids with the total
length to 34500 km.
By 2022, the current
regasification capacity of 42 million metric tons per year was increased 61
million metric tons per year. Prime minister announced that the potential
coverage of the city gas distribution projects has been increased by 232
additional geographic areas dispersed over 400 districts, with the capacity
reach of 70% of the people and 53% of the country from land area.
Growing Usage of Piped Natural
Gas (PNG) Driving the Market Growth
According to the Petroleum and
Natural Gas Regulatory Board (PNGRB) Act 2006, PNGRB authorizes the development
of City Gas Distribution (CGD) networks, including PNG networks, in specific
geographical areas (GA) across the nation. These organizations have developed
into the country's expanding PNG industry, owing to which the market is
expanding.
In April 2022, Letters of intent
(LoI) were issued to the three successful entities for the retail sale of
compressed natural gas (CNG) to automobiles and piped natural gas (PNG) to
homes in five geographical areas (GAs), dispersed over 27 districts in five
states. This was approved by PNGRB at its 111th board meeting. Furthermore, for
the government's "Atmanirbhar Bharat" program to succeed, expanding
the distribution area and developing a gas-based economy are essential. For
example, “One Nation One Gas Grid” is the direction in which work is being
done. In order to supply gas to diverse participants, it is necessary to
integrate these regional systems and create a national grid.
LNG usage increased by 59.3
billion cubic meters in 2019 to roughly 56.9 billion cubic meters in 2020. The
pipeline grid is anticipated to accelerate the development of municipal gas
projects and boost access to renewable energy, hence promoting the demand for
natural gas pipelines.
Increasing Demand for Petroleum
Products
An examination of data made
public by the Petroleum Planning & Analysis Cell (PPAC) of the Oil Ministry
reveals that India's consumption of petroleum products reached a record high in
the fiscal year 2022–23, highlighting the strong demand for transportation
fuels and several other refined goods. The usage of the three main
fuels—diesel, petrol and liquefied petroleum gas (LPG)—broke all prior records
for the year that ended in March 2021. Consumption of petroleum products is
used as a proxy for monitoring developments in industrial activity and
residential consumption, as well as a gauge of the demand for crude oil.
In 2022–2023, India consumed
222.30 million tonnes of petroleum products, an increase of 10.2% year over
year (YoY). The previous record for petroleum product consumption, according to
an examination of historical data, was 214.13 million tonnes in 2019–20. Due to
the pandemic, the demand declined in 2020–2021 before seeing a moderate
recovery in 2021–2022. Demand for the majority of goods exceeded pre-COVID
highs in 2022–2023 as different economic sectors fully recovered from the
pandemic's effects. According to predictions made by PPAC and announced in late
February 2023, the nation's consumption of petroleum products will reach a new
high of 233.81 million tons in 2023–24.
In Financial year 2022–2023,
India used 85.90 million tonnes of diesel. Now the most popular fuel in India
is diesel, which accounts for about 40% of the nation's total consumption of
petroleum products. The nation consumed 34.98 million tonnes of petrol, an
increase of 13.4% year over year. Even though it was only 0.9% higher YoY in
2022–2023, India's LPG consumption even reached a new high of 28.50 million tonnes
and the amount of LPG consumed is anticipated to increase to 29.12 million
tonnes from 2023-2024. The PPAC forecasts diesel demand to increase to 90.56
million tonnes in 2023–24. Stronger growth in the transport and some industrial
sectors can be seen in the higher demand for these two fuels.
Download Free Sample Report
Recent Development:
- According to the results of the 11th
round of city gas distribution (CGD) bidding, Indian Oil Corporation (IOC)
will receive nine licences in January 2022, while Bharat Petroleum
Corporation Ltd. (BPCL) will receive six.
- Adani Total Private Limited withdrew its
expression of interest (EoI) to construct a natural gas pipeline from
Haldia to Panitar in May 2022 in response to concerns raised by
Hiranandani Energy and others.
Market Segmentation
India Natural Gas market is
segmented based on type, application, region and competitive landscape. Based
on type, the Natural Gas market of India can be segmented into Compressed
Natural Gas, Piped Natural Gas and Liquified Petroleum Gas. Based on application,
the market can be segmented into Industrial, Electric Power, Transportation,
Residential, Commercial, Others.
Market Players
Major market players in the
India Natural Gas Market are GAIL (India) Limited, Gujarat State Petronet
Limited (GSPL), Indraprastha Gas Limited (IGL), Mahanagar Gas Limited (MGL),
Oil and Natural Gas Corporation (ONGC), Oil India Limited (OIL), Reliance
Industries Limited, Cairn Oil & Gas vertical of Vedanta Limited, Essar
Global Fund Limited, Petronet LNG Limited (PLL).
Attribute
|
Details
|
Base Year
|
2023
|
Historic Data
|
2019 – 2022
|
Estimated Year
|
2024
|
Forecast Period
|
2024 – 2029
|
Quantitative Units
|
Production Volume and
CAGR for 2019-2023 and 2024-2029
|
Report coverage
|
Revenue forecast, company
share, growth factors, and trends
|
Segments covered
|
Type
Application
|
Region scope
|
West, North, South, East
|
Key companies profiled
|
GAIL (India) Limited,
Gujarat State Petronet Limited (GSPL), Indraprastha Gas Limited (IGL),
Mahanagar Gas Limited (MGL), Oil and Natural Gas Corporation (ONGC), Oil
India Limited (OIL), Reliance Industries Limited, Cairn Oil & Gas
vertical of Vedanta Limited, Essar Global Fund Limited, Petronet LNG Limited
(PLL)
|
Customization scope
|
10% free report
customization with purchase. Addition or alteration to country, regional
& segment scope.
|
Pricing and purchase
options
|
Avail customized purchase
options to meet your exact research needs. Explore purchase options
|
Delivery Format
|
PDF and Excel through
Email (We can also provide the editable version of the report in PPT/Word
format on special request)
|
Report Scope:
In this report, the India
Natural Gas Market has been segmented into following categories, in addition to
the industry trends which have also been detailed below:
- India Natural Gas Market,By Type:
- Compressed Natural Gas
- Piped Natural Gas
- Liquified Petroleum Gas
- India Natural Gas Market,By Application:
- Industrial
- Electric Power
- Transportation
- Residential
- Commercial
- Others
- India Natural Gas Market, By Region:
Competitive Landscape
Company Profiles: Detailed
analysis of the major companies present in the India Natural Gas Market.
Available Customizations:
India Natural Gas Market report
with the given market data, Tech Sci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and profiling of
additional market players (up to five).
India Natural Gas Market is
an upcoming report to be released soon. If you wish an early delivery of this
report or want to confirm the date of release, please contact us at [email protected]