India's Natural Gas Demand Set for Moderate Growth

India's reliance on natural gas for energy has seen a marginal increase to 7.12% in FY25, according to provisional data released by the Ministry of Statistics and Programme Implementation (MoSPI). This marks a slight rise from the 6.7% share recorded in FY23.

The growth in demand is expected to be driven primarily by the expansion of the City Gas Distribution (CGD) network, increased adoption of Compressed Natural Gas (CNG) in the transport sector, and growing industrial demand for cleaner fuels.

India's natural gas demand is projected to reach around 260 to 300 million standard cubic meters per day (MSCMD) by 2030 under a base case scenario, according to a report by the Petroleum and Natural Gas Regulatory Board (PNGRB).