New Delhi has announced ambitious plans to increase natural gas’s contribution to India’s energy mix from current levels of approximately 6.5 per cent to 15 per cent by 2030, according to petroleum ministry officials. The target forms a cornerstone of India’s strategy to reduce coal dependence whilst maintaining energy security during the transition to renewable sources.
The government’s natural gas promotion strategy encompasses expanding pipeline infrastructure, encouraging industrial fuel switching, and developing city gas distribution networks across urban centres. Current gas infrastructure constraints have limited adoption despite price competitiveness compared to liquid fuels in transportation and industrial applications.
Petroleum ministry data indicates that achieving the 15 per cent target requires doubling current gas consumption to approximately 100 billion cubic metres annually by decade’s end. This expansion necessitates substantial investments in import infrastructure, domestic production enhancement, and distribution network development.
Industry executives suggest the target reflects pragmatic recognition that intermittent renewable energy requires reliable backup power sources during transition periods. Natural gas-fired generation provides flexibility to balance grid stability whilst reducing emissions compared to coal-fired alternatives.
The strategy includes promoting compressed natural gas adoption in transportation sectors and liquefied petroleum gas substitution in residential cooking applications. These measures address both energy security concerns and urban air quality improvement objectives.
International energy companies have expressed interest in supporting India’s gas infrastructure development through joint ventures and technology partnerships. The policy certainty provided by clear targets enables long-term investment planning across the gas value chain.
Government officials indicate that domestic gas production enhancement through exploration licensing and technology adoption will complement import diversification strategies to achieve the ambitious consumption targets whilst managing energy security risks.