According to TechSci Research report, “India Natural Gas Market – By Region, Competition, Forecast & Opportunities, 2020-2030F, The India Natural Gas Market was valued at USD 16.9 Billion in 2024 and is expected to reach USD 27.36 Billion by 2030 with a CAGR of 8.2% during the forecast period. Government policy support plays a critical role, with initiatives like the Pradhan Mantri Ujjwala Yojana (PMUY) increasing LPG access for rural households, while the development of a National Gas Grid enhances distribution capabilities. The government's commitment to reducing carbon emissions by promoting natural gas over more polluting fuels aligns with India’s clean energy transition.
Additionally, the rising industrial demand is another key driver, as sectors like fertilizers, chemicals, and steel increasingly adopt natural gas due to its cost-effectiveness and lower environmental impact compared to coal. The industrial sector’s push towards cleaner energy sources, along with the growing awareness of environmental issues, particularly urban air pollution, is further accelerating the adoption of natural gas. This preference for cleaner fuels is supported by both government policies and consumer demand, enhancing natural gas's role in India’s energy mix.
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Based on Application, electric power segment dominated in the India Natural Gas Market, in 2024, In 2024, the electric power generation segment is expected to dominate the India natural gas market, driven by the increasing demand for cleaner and more efficient sources of energy. India’s growing population, rapid industrialization, and urbanization have resulted in a significant rise in electricity consumption. As the country aims to diversify its energy mix, natural gas is emerging as the preferred fuel for power generation due to its relatively lower emissions compared to coal, a traditional dominant fuel source in the country. The Indian government’s commitment to reducing carbon emissions and its ambition to meet climate change targets have led to an accelerated push toward cleaner energy alternatives, making natural gas a key player in this transformation.
Government initiatives such as the National Clean Energy Fund and the adoption of the National Gas Grid are key drivers of growth in the electric power generation sector. The government has also implemented policies to encourage the use of natural gas in power generation through various incentives and regulatory measures. Additionally, the availability of natural gas at competitive prices, primarily through imports via LNG terminals and expanding pipeline networks, has helped make natural gas a more attractive fuel option for power producers.
Natural gas-based power plants offer several advantages over conventional coal-fired plants, including higher efficiency, lower emissions of harmful pollutants, and reduced dependency on coal, which is a major contributor to air pollution and environmental degradation. This makes natural gas a crucial part of India’s strategy to balance energy needs with environmental concerns. Moreover, combined cycle gas turbine (CCGT) plants, which are becoming more prevalent in India, provide superior efficiency and are increasingly being used in the country’s power generation sector.
Another factor driving the dominance of the electric power generation segment is the growing demand for peak power. As renewable energy sources such as solar and wind are intermittent and cannot provide constant power, natural gas plants are used as a backup to ensure grid stability. Gas-fired plants can be ramped up quickly to meet demand during peak periods, which is essential for grid reliability and supporting the increasing integration of renewable energy. In this regard, natural gas is often seen as an ideal solution to support the clean energy transition and ensure a stable and reliable energy supply.
The growing adoption of natural gas in the power sector is in line with India’s broader energy transition goals. The government’s Ujjwala Yojana, which aims to provide cleaner cooking fuel to households, and the expansion of city gas distribution (CGD) networks, have also increased the demand for natural gas, further supporting its adoption in power generation. With the expansion of LNG infrastructure and enhanced connectivity between domestic production and international markets, natural gas is expected to play an increasingly significant role in meeting India’s growing electricity demand.
Additionally, the private sector’s involvement in natural gas-based power generation is expanding. Companies such as Reliance Industries, Indian Oil Corporation (IOC), and Adani Power are making significant investments in natural gas-based power plants and LNG infrastructure. These investments are poised to contribute to the sector’s growth, helping India move towards its target of generating 50% of its electricity from non-fossil fuel sources by 2030, as part of its commitment to reducing greenhouse gas emissions.
The electric power generation segment is set to dominate India’s natural gas market in 2024 due to the government's strong support for clean energy, the increasing adoption of natural gas in power generation, and the rising need for reliable, efficient, and environmentally friendly energy solutions. This shift aligns with the country's energy goals and will continue to drive the growth of natural gas in India’s energy landscape.
Key market players in the India Natural Gas market are: -
- GAIL (India) Limited
- Gujarat State Petronet Limited (GSPL)
- Indraprastha Gas Limited (IGL)
- Mahanagar Gas Limited (MGL)
- Oil and Natural Gas Corporation (ONGC)
- Oil India Limited (OIL)
- Reliance Industries Limited
- Cairn Oil & Gas vertical of Vedanta Limited
- Essar Global Fund Limited
- Petronet LNG Limited (PLL)
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“The India natural gas market offers several promising opportunities. One of the major opportunities lies in small-scale LNG (liquefied natural gas) solutions, which are gaining traction for providing natural gas to regions lacking pipeline access. These solutions help expand the reach of natural gas to remote and underserved areas, enhancing energy access. The government’s push for CNG adoption in vehicles presents another significant opportunity, as cities with high air pollution levels are increasingly shifting to compressed natural gas for transportation. Moreover, renewable energy integration with natural gas is emerging as a key growth area, where natural gas serves as a backup fuel for intermittent renewable sources like solar and wind, ensuring grid stability. The growing demand for LNG imports, driven by rising energy consumption and limited domestic production, also presents opportunities for LNG terminals and import infrastructure development. Lastly, as industries focus on cleaner energy, there are rising prospects for natural gas in industrial applications like chemicals and cement production.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based Global management consulting firm.
“India Natural Gas Market Segmented By Type (Compressed Natural Gas, Piped Natural Gas and Liquified Petroleum Gas), By Application (Industrial, Electric Power, Transportation, Residential, Commercial, Others), By Region, Competition, Forecast and Opportunities, 2020-2030F,” has evaluated the future growth potential of India Natural Gas Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in India Natural Gas Market.
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