IGU Report Calls for Reforms to Boost India’s Natural Gas Growth

A new report by the International Gas Union (IGU) highlights the need for gas market reforms to boost India's natural gas growth. The report emphasizes that expanding LNG import capacity is not enough, and investment in transmission and distribution infrastructure, as well as gas-intensive industries, is crucial.

India has significantly expanded its regasification terminal capacity, but the pace of investment in midstream infrastructure has lagged, limiting the country's ability to increase gas consumption. The report argues that reforms to pricing mechanisms and market access will be essential to support sustained growth in gas demand.

The Strait of Hormuz crisis has underlined India's heavy reliance on Gulf-sourced LPGs and LNG, particularly from Qatar. This vulnerability raises questions about the reliability of these imports. However, the report notes that a more diversified import portfolio can mitigate some of these risks.