India's Natural Gas Demand Projected to Surge 60 Percent by 2030, Says IEA Report

A new report released by the International Energy Agency (IEA) at India Energy Week 2025 highlights significant growth in India's natural gas market.

The report was released at India Energy Week 2025, providing valuable insights for industry leaders and policymakers. It states that India's natural gas consumption will reach 103 billion cubic meters (bcm) per year by 2030, an increase of nearly 60 percent. This would put India’s usage on par with Saudi Arabia's current levels.

The IEA report identifies three key factors driving this dramatic increase: rapid expansion of India's gas infrastructure, a resurgence in domestic natural gas production, and anticipated improvements in global gas market dynamics. Crucially, the report emphasises the role of supportive government policies in creating an environment conducive to increased gas consumption through 2030.

Leading the charge in this expansion is the city gas distribution (CGD) sector. The report highlights the rapid growth of compressed natural gas (CNG) infrastructure and the economic advantages of gas over liquid fuels for smaller industrial users as primary drivers. Heavy industries, including iron and steel manufacturing, are also expected to contribute significantly, adding approximately 15 bcm to annual demand. Furthermore, gas usage in oil refining is projected to increase by over 4 bcm per year as more refineries connect to the expanding gas grid.

The IEA report suggests that even more ambitious growth is possible. With targeted strategies and additional policy support, India's gas consumption could potentially reach 120 bcm annually by 2030, approaching current consumption levels in South America. This accelerated scenario would depend on greater utilisation of gas-fired power plants, faster adoption of LNG in heavy-duty transport, and a more rapid expansion of CGD infrastructure.

"India's gas market is entering a new phase of growth, supported by significant infrastructure development and clear policy direction," said IEA Director of Energy Markets and Security Keisuke Sadamori. "The prospect of higher gas demand in India coincides with an expected wave of new global LNG supply. However, it will require careful planning and market coordination to ensure supply security and to help gas to compete in a price-sensitive market," he noted.

While domestic gas production, which accounted for 50 percent of demand in 2023, is expected to see moderate growth through 2030, LNG imports are projected to more than double. The report forecasts imports reaching 64 bcm annually by 2030.

This surge in LNG imports will solidify India's position as the fourth-largest LNG importer globally, underscoring its increasing influence in the international gas market.