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

India's long-term natural gas growth relies heavily on investment in distribution and transmission infrastructure, as well as reforms to market design, regulation, and pricing. This is according to a recent report by the International Gas Union (IGU).

Although India has increased its regasification terminal capacity, it still struggles to raise gas consumption due to slow midstream infrastructure investment.

The IGU study highlights that changes in price policies and market access are necessary to sustainably increase gas consumption. The Strait of Hormuz crisis has underscored the vulnerability of India's gas supply chains, particularly its reliance on Gulf-sourced LPGs and LNG from Qatar.

India imports around 50-52% of its gas requirements, with the remaining portion supplied by domestic production. For LPG, the dependence is even more significant, with between 60 and 65% of India's needs met through imports.