India's Gas Demand Growth Hinges on Reforms, Infrastructure Investment

A recent report by the International Gas Union (IGU) emphasizes that India's next phase of gas demand growth depends heavily on reforms, infrastructure investment, and a diversified import portfolio.

The report notes that while India has expanded regasification terminal capacity, the pace of investment in midstream infrastructure has lagged, limiting the country's ability to increase gas consumption.

India remains heavily dependent on imports to meet its natural gas and LPG requirements, with domestic gas output meeting around 50-52 per cent of the country's demand.

The report argues that reforms to pricing mechanisms and market access will be essential to support sustained growth in gas demand, as well as further liberalisation of LNG terminal capacity bookings and system entry charges.