A report by CareEdge Ratings indicates that India’s reduced dependence on imported LNG, declining from 53% in FY21 to around 45% by FY26, is attributed to increased domestic natural gas production. Despite challenges such as the Covid-19 pandemic and geopolitical tensions affecting imported LNG prices, India aims to elevate natural gas’s share in its energy mix to 15% by 2030. Over the past three years, approximately 30 MMSCMD of new domestic natural gas production has been introduced, with an additional 15 MMSCMD expected by FY25. This focus extends to various sectors, including distribution, fertilizers, refineries, city gas power, and petrochemicals.
Regulatory adjustments, stable imported gas prices, ample LNG capacity, and expanding pipeline infrastructure are anticipated to facilitate this transition, maintaining import dependency at around 45% by FY26. Enhanced domestic production, propelled by recent discoveries and upcoming projects, helps mitigate historical import reliance. India foresees strong natural gas demand across major consumption segments, with FY24 expected to witness record-high consumption post the challenges posed by the COVID-19 pandemic and geopolitical tensions.
