Domestic production to boost India’s natural gas market

Growing environmental concerns and favourable government initiatives will boost the natural gas market in India, according to the latest report from TechSci Research.

The demand for natural gas in India is increasing due to a number of factors including rising concerns towards carbon emissions, as well as the country’s increasing production and infrastructure development.

Natural gas applications

In India, the major natural gas application areas include power generation, transportation, domestic fuel, and fertilizers. Over the next five years, the demand from these sectors is forecast to remain strong. Benefits such as cost-effectiveness, clean burning and safety, compared to other conventional fuels, is driving the demand for natural gas in India.

LNG imports

An increase in natural gas production by companies including Reliance India Limited, Oil and Natural Gas Corporation and Cairn India Limited is expected to increase the consumption of natural gas. Natural gas production from unconventional resources and imports in the form of LNG are also forecast to increase in order to account for the gap between supply and demand.

According to TechSci Research’s recent report, India Natural Gas Market Forecast & Opportunities 2019, the country’s natural gas market, in production volume terms, is projected to grow at a CAGR of approximately 26% between 2014 and 2019. Currently, GAIL India Limited is the leading transmission company operating the largest pipeline network in the country.

Pipeline network

The report reveals that the country’s western region has the highest consumption of natural gas, and the region is expected to remain the leader over the forecast period 2014-19. However, southern region is growing with significant pace on account of presence of KG basin and expanding pipeline network. The government is also promoting the use of natural gas by implementing new pricing mechanism, effective from 1^st April this year.

Power sector

“In India’s natural gas market, power generation accounts for the highest consumption of natural gas, predominantly due to the environmental and economic benefits offered by natural gas in power production. The power generation sector is expected to remain the largest consuming sector due to anticipated commissioning of a number of natural gas power plants in the country over the next five years”, explained Karan Chechi, Research Director at TechSci Research.

Adapted from press release by Katie Woodward

Read the article online at: https://www.worldpipelines.com/business-news/14032014/indian_production_to_help_natural_gas_market_391/