Gandhinagar: Demand for natural gas in India can nearly double by 2030 if factors including accelerated progress, favourable policy implementation, and enhanced investments remain conducive, Petroleum and Natural Gas Regulatory Board chairperson Anil Kumar Jain said.
City Gas Distribution (CGD) network is expected to be the primary growth driver, he told the media on Wednesday.
“The current natural gas consumption in India is 190 Million Standard Cubic Meters per Day (MMSCMD). We expect a significant rise in city gas distribution by 2030.
“As per the growth estimates, natural gas consumption will rise to 297 MMSCMD under a scenario based on the existing global and domestic situations and policies. If the situation is conducive, the demand can grow to 365 MMSCMD by 2030,” he said.
Jain was in Gandhinagar to attend the 2nd PNGRB national conclave on natural gas and petroleum products infrastructure.
Jain said PNGRB has allotted a license to lay the CGD network through a bidding process. We are committed to setting up 17,000 CNG stations and 12 crore domestic pipeline connections across the country by 2030, he added.
PNGRB is a statutory body mandated to regulate the refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas.
“One of the challenges (to natural gas consumption) is that the prices are not under our control. Another challenge is the exclusion of gas from the GST regime,” he said.
Jain demanded that states consider slashing of tax because natural gas is a clean fuel.
He said CNG is a new fuel for India. There are associated challenges related to laying infrastructure.
“As far as the natural gas pipeline is concerned, 10,000 km pipelines have been authorised to be laid at Rs 3-5 crore per km, which will attract an investment of Rs 40,000-50,000 crore in 3-5 years,” Jain said.
He said another commitment of Rs 30,000 crore is for distributing city gas at Rs 400 crore per district.
“We expect to see an increase in CNG target with CNG adoption being undertaken rapidly. In domestic PNG, it depends on consumer choice,” Jain said.
He said the CGD network bidding involves three objectives – the number of proposed CNG stations, houses to be connected to domestic pipelines, and kilometres of network to be laid in cities or districts.
“We granted seven years to the winner of bids to achieve these three objectives. They gave us a commitment to setting up 17,000 CNG stations and 12 crore domestic pipeline connections. These targets were set up during the last bidding round in 2023, which they have to complete by 2030,” Jain said.
As per a report shared by PNGRB on “India’s Natural Gas Demand Projection for 2030-2040,” the CGD sector is expected to be the primary growth driver for natural gas consumption with a projected 2.5 to 3.5 times growth by 2030.
It is expected to play a crucial role in shaping future NG (Natural Gas) consumption trends across various demand projection scenarios.
The natural gas consumption in India will reach 297 MMSCMD by 2030 in a good-to-go scenario, or a situation with moderate growth and expected developments based on current trends and commitments. In this scenario, it is expected to reach 495 MMSCMD by 2040, stated the report.
In a good-to-best scenario, with accelerated progress, favourable policy implementation and enhanced investment, the same is expected to grow to 365 MMSCMD by 2030, and 630 MMSCMD by 2040.
The report stated that the continuous development of CGD infrastructure by authorised entities will act as a catalyst for natural gas consumption by serving end consumers.
Upsurge in the refinery and petrochemical will provide a new growth leg. The power generation is expected to grow at a moderate rate, while the fertiliser sector is projected to grow moderately.
“LNG as a long-haul transportation fuel could be a game changer, with a potential to play a pivotal role in replacing diesel,” it said.
The report further stated that achieving India’s projected natural gas targets for 2030 and 2040 will require “a continued commitment from entities towards infrastructure expansion, favourable LNG pricing, and conducive policies.”
At the same time, geopolitics, policy uncertainty, and volatility in gas prices cannot be ignored, it said.
The two-day PNGRB conclave features six thematic sessions focused on shaping a cleaner, resilient energy future through gas vision planning, infrastructure development, consumer protection, pipeline modernisation, and strategic sourcing to support India’s energy security goals.
