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India Natural Gas Market Size (2024 - 2029)

The natural gas market in India is poised for growth, driven by factors such as the expansion of natural gas pipeline capacity and rising demand for petroleum products. Despite challenges like dependence on imports and market volatility, the sector is benefiting from the growth of the piped natural gas sector, supported by the development of city gas distribution networks. The Indian government's commitment to significantly increasing the share of natural gas in its energy mix by 2030 presents further opportunities for market expansion. Additionally, increased investments in oil and gas infrastructure, including pipelines and LNG terminals, are expected to bolster the market's capacity and reach.

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Market Size of India Natural Gas Industry

India Natural Gas Market Size
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 3.00 %
Market Concentration Low

Major Players

India Natural Gas Market Major Companies

*Disclaimer: Major Players sorted in no particular order

India Natural Gas Market Analysis

The India oil and gas market is expected to register a CAGR of more than 3% during the forecast period (2022-2027). The COVID-19 pandemic has negatively affected the market. The revenue of gas companies declined due to the unexpected lockdown. The demand for diesel, the most used fuel in the country, has fallen due to a significant reduction in traffic volumes on the roads. Factors such as the increasing natural gas pipeline capacity and the increasing demand for petroleum products are expected to drive the Indian natural gas market during the forecast period. However, significant dependence on imports of natural gas for satisfying domestic demand and high volatility is expected to hinder the growth of the market.

  • The piped natural gas (PNG) sector has been growing considerably over the recent past, owing to the expansion of several city gas distribution (CGD) networks. Therefore, the industry is expected to witness growth during the forecast period.
  • The initiative of Indian government to meet its target of reaching 15% natural gas in its energy basket mix by 2030, which is in 2021 at 6.2-6.5%, whereas the global average is 23-24%. This increase is expected to provide an opportunity for growth after the forecast period
  • Due to the increase in gas imports, the Indian government is increasing its investments in oil and gas pipelines and LNG terminals. Therefore, the increasing investments are expected to drive the market.

India Natural Gas Industry Segmentation

The scope of India Natural Gas Market includes:

Type
Compressed Natural Gas
Piped Natural Gas
Liquified Petroleum Gas
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India Natural Gas Market Size Summary

The natural gas market in India is poised for growth, driven by increasing pipeline capacity and a rising demand for petroleum products. Despite the challenges posed by the COVID-19 pandemic, which led to a decline in revenue for gas companies and reduced diesel demand, the market is expected to recover. The expansion of city gas distribution networks and the government's initiative to increase the share of natural gas in the energy mix to 15% by 2030 are key factors supporting this growth. However, the market faces hurdles due to its significant reliance on imported natural gas and the inherent volatility in global markets. The government's focus on developing a national gas grid and enhancing infrastructure investments in oil and gas pipelines and LNG terminals is expected to further bolster the sector.

The Indian natural gas market is characterized by a fragmented landscape with major players such as Oil and Natural Gas Corporation, Reliance Industries, and Indian Oil Corporation Limited. The government's efforts to integrate regional grids into a national network under the "One Nation, One Gas Grid" initiative are crucial for creating a gas-based economy. The pipeline infrastructure, being the most economical means of transporting natural gas over long distances, is set to expand significantly, with plans for new pipelines and increased coverage. This expansion is supported by substantial investments, including a notable plan for a natural gas pipeline in the northeast region. The growth in the midstream sector, alongside the development of city gas projects, is expected to enhance clean energy access and drive the market forward.

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India Natural Gas Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast, in USD Billion

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 PESTLE Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Type

      1. 2.1.1 Compressed Natural Gas

      2. 2.1.2 Piped Natural Gas

      3. 2.1.3 Liquified Petroleum Gas

India Natural Gas Market Size FAQs

The India Natural Gas Market is projected to register a CAGR of greater than 3% during the forecast period (2024-2029)

Oil and Natural Gas Corporation, Reliance Industries, Indian Oil Corporation Limited, Adani Total Gas Limited and Punj Lloyd Limited are the major companies operating in the India Natural Gas Market.

India Natural Gas Market Report Snapshots

Natural Gas Market in India Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)