India’s natural gas consumption is poised for a substantial leap, projected to increase nearly 60% by the end of this decade and more than double by 2040, according to a new assessment by the Petroleum and Natural Gas Regulatory Board (PNGRB). The upward trend reflects India’s broader clean energy ambitions, supported by increased adoption across transportation, domestic, and industrial sectors.
In 2023-24, daily gas use stood at 187 million standard cubic metres (mmscmd). Under the PNGRB’s baseline projection known as the ‘Good-to-Go’ scenario—anchored in current policies—consumption could climb to 297 mmscmd by 2030 and reach 496 mmscmd by 2040. A more optimistic outlook under the ‘Good-to-Best’ scenario places potential consumption even higher—at 365 mmscmd by 2030 and 630 mmscmd by 2040.
At the heart of this surge is the City Gas Distribution (CGD) sector, which supplies compressed natural gas (CNG) for transport and piped gas for homes and businesses. CGD is expected to account for nearly a third of total gas demand by 2030 and almost half by 2040. Under the base-case scenario, CGD could use 87 mmscmd by 2030 and expand further to 129 mmscmd by 2040.
The government has set a target to increase natural gas’s contribution to the country’s energy mix from the current 7% to 15% by 2030, supporting India’s long-term goal of achieving net zero emissions by 2070.
While growth in gas use for fertiliser production will be modest—from 58 mmscmd now to around 73 mmscmd in 2040—other sectors such as refineries and petrochemicals will see steeper increases. Usage in these segments is projected to nearly double to over 43 mmscmd by the end of this decade.
Given that India currently sources about half its natural gas needs from overseas, demand for liquefied natural gas (LNG) is expected to more than double by 2030. In addition, LNG-fuelled trucking is likely to emerge as a cleaner alternative to diesel for long-haul transport post-2030, following China’s successful model in reducing freight-related emissions.
India’s gas future, shaped by rising urban energy demands, cleaner transport options, and industry transformation, is set to play a pivotal role in the country’s low-carbon journey.
