India's Gas Growth Hinges on Infrastructure Expansion and Market Reforms
India's natural gas growth hinges on infrastructure expansion, market reforms, and investment in gas-intensive industries. The International Gas Union (IGU) report warns that India's reliance on Gulf-sourced LNG imports exposes supply vulnerabilities.
The Strait of Hormuz crisis has disrupted energy transit through the strait, highlighting India's dependence on imported gas for its power, industrial, and domestic needs.
India meets around 50-52% of its natural gas demand domestically, with the remaining balance met through imports. Liquefied petroleum gas (LPG) imports account for 60-65% of India's requirement, despite being one of the world's largest LPG consumers.
To capitalize on lower global LNG prices and improve gas adoption, India needs to address infrastructure bottlenecks, liberalize terminal capacity bookings, and system entry charges. Reforms to market design, regulation, and pricing are also crucial for sustained growth in gas demand.