IGU Report Highlights Need for Reforms to Boost Indian Gas Growth
A new report from the International Gas Union (IGU) emphasizes the need for market reforms and infrastructure investment to boost India's natural gas growth. The report highlights that while India has expanded its liquefied natural gas (LNG) import capacity, investment in transmission and distribution infrastructure has lagged behind.
This limited ability to increase gas consumption is attributed to a reliance on Gulf-sourced LPGs and LNG, particularly from Qatar. The Strait of Hormuz crisis has exposed India's vulnerability to disruptions in energy transit through the strait, which accounts for 60-65% of its LPG imports.
The report suggests that reforms to pricing mechanisms and market access are essential to support sustained growth in gas demand. It also notes that greater investment in infrastructure, commercial contracting, and broader market reforms will be necessary to increase the role of gas in India's energy mix.