|
Forecast Period
|
2026-2030
|
|
Market Size (2024)
|
USD 1.51 billion
|
|
CAGR (2025-2030)
|
4.21%
|
|
Fastest Growing Segment
|
Shale Gas
|
|
Largest Market
|
West India
|
|
Market
Size (2030)
|
USD
1.93 billion
|
Market Overview
India Unconventional Gas Market was anticipated to be USD 1.51 billion by 2024 and is expected to project significant growth to reach USD 1.93 billion in the end of forecast period with a CAGR of 4.21% through 2030.
The
Indian unconventional gas market, though in its nascent stages, presents a
promising landscape driven by the abundance of untapped resources. Unlike
conventional gas reservoirs, unconventional gas sources pose unique challenges
due to their geological complexities. However, India boasts substantial
reserves of these resources, particularly shale gas, estimated at approximately
96 trillion cubic feet by the U.S. Energy Information Administration.
Recognizing
the strategic importance of this sector, the Indian government has implemented
proactive measures to foster its development. Key policies such as the
Hydrocarbon Exploration Licensing Policy (HELP) and the Coal Bed Methane (CBM)
policy have been introduced to incentivize exploration and production
activities. Moreover, the Foreign Direct Investment (FDI) policy, allowing up
to 100% FDI in natural gas exploration and production, has been instrumental in
attracting foreign investments.
Despite
the immense potential, the unconventional gas market in India faces several
challenges. Technical complexities in extraction, environmental concerns,
inadequate infrastructure, and regulatory hurdles pose significant obstacles.
However, concerted efforts are underway to address these challenges and unlock
the full potential of the sector. while the Indian unconventional gas market is
still evolving, it holds promise as a vital component of the country's energy
portfolio. With continued policy support, technological advancements, and
investment inflows, India's unconventional gas sector is poised to play a
pivotal role in meeting the nation's energy needs and driving sustainable
development.
Key Market Drivers
Growing Demand of Unconventional
Gas in Power Generation
The
escalating energy demand in India, spurred by rapid economic growth and
urbanization, is a primary driver of the country's burgeoning unconventional
gas market. This surge in energy consumption is fueled by industrialization,
urban development, and rising living standards, necessitating a strategic shift
towards tapping unconventional gas resources like shale gas, coal bed methane
(CBM), and tight gas.
Despite
the geological challenges associated with their extraction, unconventional gas
resources offer immense potential to bolster India's energy supply. Advanced
drilling techniques, including hydraulic fracturing, are essential for
unlocking these reserves, demonstrating the critical role of technological
advancements in harnessing their untapped potential.
India's
power generation sector is poised for significant growth within the
unconventional gas market. The adoption of natural gas-fired power plants is
gaining momentum due to their lower emissions relative to coal-powered plants.
Additionally, gas power plants offer greater flexibility, making them
well-suited for addressing peak load demand and ensuring a reliable power
supply.
The
recent bidding process initiated by India in September 2023 to procure an
additional 4,000 megawatts (MW) of electricity from gas-fired power plants
underscores the country's growing reliance on gas for power generation. This
initiative not only drives demand for unconventional gas resources but also
highlights the increasing significance of gas in India's energy landscape.
the
growing demand for unconventional gas in power generation emerges as a key
driver of India's unconventional gas market. Supported by favorable government
policies and robust investments, the market is poised for significant expansion
in the foreseeable future. The development and utilization of unconventional
gas resources not only enhance India's energy security but also yield
substantial economic and environmental benefits, positioning gas as a vital
component of India's energy transition strategy.
Growing Demand of Unconventional
Gas in Automotive Industry
The
Indian government's proactive stance towards promoting cleaner energy sources
has emerged as a cornerstone driving the remarkable growth of India's
unconventional gas market. Acknowledging the imperative to address the surging
energy demand while mitigating environmental concerns, the government has
embarked on a multifaceted approach to explore unconventional gas sources as
viable alternatives. These strategic policy directions not only incentivize the
utilization of compressed natural gas (CNG) but also advocate for the adoption
of other unconventional gases within the automotive sector, thereby catalyzing
market expansion.
India's
robust economic trajectory, coupled with a notable uptick in consumer
purchasing power, has precipitated a substantial increase in vehicle sales
nationwide. As the Indian light-vehicle market continues its upward trajectory,
characterized by SUVs commanding over 40% of total sales, the concurrent surge
in demand for unconventional gas within the automotive industry becomes
increasingly apparent.
In
essence, the burgeoning demand for unconventional gas in India's automotive
sector emerges as a pivotal driver propelling the country's unconventional gas
market forward. With escalating vehicle sales, bolstered by supportive
government policies and the escalating adoption of natural gas-powered
vehicles, the market stands poised for significant expansion in the foreseeable
future. This growth trajectory not only augurs well for fostering a cleaner and
more sustainable environment but also underscores India's burgeoning prominence
as a frontrunner in the global unconventional gas arena.
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Key Market Challenges
Surge in Regulatory and Policy
Challenges
Regulations
and policy frameworks present formidable challenges to the development of
India's unconventional gas market. While designed to ensure safe and
responsible resource extraction, stringent regulations can inadvertently impede
progress by creating barriers to entry and imposing significant compliance
burdens on industry players. In India, the regulatory landscape for
unconventional gas is intricate and continuously evolving, requiring a delicate
balance between fostering development, and safeguarding environmental and
public health interests.
Policy
challenges further compound the complexity of India's unconventional gas
market. Despite ambitious goals to increase the share of natural gas in the
energy mix, achieving this target by 2030 necessitates a comprehensive policy
framework. Such a framework must address fiscal incentives, market reforms, and
infrastructure development while navigating political and economic
considerations and ensuring energy security and affordability for consumers.
Moreover,
challenges related to insufficient supplies, inadequate infrastructure, and
pricing issues persist, hindering the sector's growth. Addressing these
challenges demands concerted efforts from the government, industry
stakeholders, and regulatory bodies. By surmounting regulatory and policy
hurdles and resolving infrastructural and pricing challenges, India can harness
its vast unconventional gas reserves to bolster energy security, diminish
import dependence, and foster a cleaner, sustainable energy future.
Key Market Trends
Surge in Technological
Advancements
The
production of unconventional gas in India has witnessed a notable upsurge in
recent years, driven by advancements in extraction technologies tailored to the
complexities of shale gas and coal-bed methane reservoirs. Hydraulic fracturing
and horizontal drilling techniques have emerged as game-changers, vastly
enhancing efficiency and feasibility in unconventional gas extraction.
This
surge in technological innovation owes much to the intersection of high energy
prices and the infusion of new technologies into the sector. As a result, India
has experienced a rapid expansion in oil and gas production from unconventional
sources, marking a pivotal shift in the nation's energy landscape.
Technological
advancements are pivotal not only in boosting efficiency and cost-effectiveness
but also in mitigating environmental impacts associated with unconventional gas
production. Innovations in liquefaction technology, for instance, hold promise
in bolstering the viability of liquefied natural gas (LNG) as a cleaner
substitute for coal and oil, aligning with India's aspirations for sustainable
energy transitions.
By
strategically leveraging these advancements, India stands poised to accelerate
its decarbonization efforts while fostering economic growth. The burgeoning
progress in unconventional gas technologies presents a ripe opportunity for
India to advance its developmental agenda, fortify energy security, and expand
energy access across the nation.
Looking
ahead, sustained advancements in unconventional gas technologies are
anticipated to play a pivotal role in India's pursuit of sustainable energy
solutions. As the nation continues its trajectory towards energy
diversification and environmental stewardship, innovation in the unconventional
gas sector will remain instrumental in driving India towards a cleaner and more
resilient energy future.
Segmental Insights
Type Insights
Based
on the category of type, the
shale gas segment emerged as the predominant player in India's unconventional
gas market. Its dominance stems from environmental benefits, emitting fewer
carbon emissions compared to other fossil fuels, aligning with India's
sustainability goals. Moreover, shale gas extraction requires less water,
easing pressure on water resources.
India's
vast coal reserves, ranked fifth globally, present ample opportunities for
shale gas and coal-bed methane exploration. Shale gas reservoirs offer high
initial production rates, despite rapid decline, making them appealing for
energy markets. Developing shale gas resources enhances energy security and
reduces reliance on imported fuels, bolstering India's energy independence.
Application Insights
Based on the application, the
power generation sector is poised for rapid expansion in India, driven by a
growing emphasis on reducing carbon emissions and embracing sustainable energy
solutions. In this pursuit, unconventional gases, particularly shale gas, are
emerging as key contributors to the country's energy transition. Shale gas
offers the promise of cleaner power generation, emitting fewer greenhouse gases
than traditional fossil fuels.
Beyond
its environmental benefits, shale gas presents a compelling economic case for
power generation. Technological advancements, such as horizontal drilling and
hydraulic fracturing, have significantly enhanced the efficiency and
cost-effectiveness of shale gas extraction. These innovations have made shale
gas a financially viable option for meeting India's growing energy needs,
offering a reliable and affordable source of power.
As India
continues to prioritize clean energy initiatives, the power generation segment
is expected to experience sustained growth, with shale gas playing a pivotal
role in driving this expansion. By harnessing the potential of unconventional
gases like shale gas, India can accelerate its transition to a greener and more
sustainable energy landscape while ensuring energy security and affordability
for its growing population..
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Regional Insights
Based on its region, the west
India, particularly Gujarat, has emerged as a dominant force in India's
Unconventional Gas Market, driven by its strategic advantages and natural
resource abundance. With significant players like ONGC and GAIL operating in
the region, West India holds a substantial market share, bolstering its
position in the gas sector. Gujarat, in particular, boasts substantial reserves
of shale gas and coal-bed methane, further solidifying its influence in the
unconventional gas market.
Beyond
its natural resources, West India benefits from favorable socio-political
conditions that facilitate smoother operations in the gas sector. Unlike
regions like West Bengal, which often face protests and hurdles in land
acquisition for gas projects, West India experiences relatively fewer
challenges, enabling uninterrupted progress in gas extraction endeavors.
The
strategic significance of West India in the unconventional gas market is
undeniable. Its favorable conditions and resource-rich landscape position the
region as a key player in shaping India's energy landscape. As the demand for
cleaner and sustainable energy sources grows, West India's role in meeting
these needs is poised to expand further, driving continued growth and
innovation in the unconventional gas market.
Recent Developments
- Oil
and Natural Gas Corporation (ONGC), India's largest oil and gas producer, is
making exciting strides towards launching India's first commercial shale gas
production in Madhya Pradesh. With a projected timeline set for the end of
2023, ONGC has been diligently developing the shale gas resources in the state,
meticulously identifying and assessing several potential shale gas blocks. The
successful commercial production of shale gas in India will mark a significant
milestone for the country's energy sector, paving the way for greater energy
self-sufficiency and reducing India's reliance on imported oil and gas. This
groundbreaking endeavor will not only contribute to India's energy security but
also foster economic growth and environmental sustainability in the region.
- In 2023,
Essar Oil & Gas Exploration & Production (EOGEPL) has announced
investments totaling 20 billion Indian rupees ($244 million) to expand its
flagship coalbed methane asset in West Bengal. The company plans to drill 200
wells in the Raniganj East CBM block over the next 18 to 24 months, aiming for
a significant increase in production. EOGEPL targets long-term CBM gas
production of 3 million cubic meters per day, with a short-term increase
anticipated. Utilizing advanced technology in existing wells, production is set
to rise from 900,000 to 1.3 million cubic meters per day in the near future.
This investment underscores EOGEPL's commitment to maximizing the potential of
its CBM asset and contributing to India's energy landscape.
Key Market Players
- Oil & Natural Gas Corporation
- Chevron Petroleum India Private Limited
- Exxon Mobil India Private Limited
- Reliance Industries Limited
- Oil India Limited
|
By
Type
|
By Application
|
By
Region
|
- Shale
Gas
- Tight
Gas
- Coalbed
Methane
- Others
|
- Industrial
- Residential
- Commercial
- Power
Generation
- Transportation
- Others
|
- North
India
- East
India
- West
India
- South
India
|
Report Scope:
In this report, the India Unconventional Gas Market
has been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- India Unconventional Gas Market, By Type:
o Shale Gas
o Tight Gas
o Coalbed Methane
o Others
- India Unconventional Gas Market, By Application:
o Industrial
o Residential
o Commercial
o Power Generation
o Transportation
o Others
- India Unconventional Gas Market, By Region:
o North India
o East India
o West India
o South India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the India Unconventional
Gas Market.
Available Customizations:
India Unconventional 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 Unconventional 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]