India's Natural Gas Growth Hinges on Infrastructure Investment and Market Reforms

India's long-term natural gas growth is heavily reliant on expanding liquefied natural gas (LNG) import capacity, but also requires investment in transmission and distribution infrastructure, reforming gas pricing and market regulations, and creating stronger demand from gas-intensive industries.

A report by the International Gas Union (IGU) highlights that while India has made significant progress in expanding its LNG regasification terminal capacity, investment in midstream infrastructure has failed to keep pace, restricting the country's ability to increase natural gas consumption.

The IGU notes that reforms to pricing mechanisms, market access and commercial frameworks will be critical to supporting sustained growth in gas demand. India's dependence on imported gas remains significant, with domestic production meeting only around 50-52 per cent of total natural gas demand.