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LNG demand set to grow in India

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LNG Industry,

India’s LNG demand is expected to increase from 64 million m3/d in 2015 to 306.54 million m3/d by 2021, according to a recently published report from TechSci Research.

The report, entitled ‘India LNG Market Forecast and Opportunities, 2025’, said that the Government Gas Allocation Policy has been implemented to address demand for natural gas across various end user industries. In the next few years, 11 397 km of pipelines are expected to be added to the country’s pipeline infrastructure.

The Indian government is increasing its focus on gas based power projects due to their high efficiency, low gestation period, environmental factors, and requirement of less water and land compared to other fuel based power plants.

Recent updates to the Gas Allocation Policy have been implemented to encourage the use of gas in different end-user segments. Other policies expected to have a positive impact on the India’s LNG market include E-bid RLNG for smoothening the supply of imported spot RLNG to power plants and fertiliser industries.  

Karan Chechi, Research Director with TechSci Research, said: "Increasing focus on expansion of gas pipeline infrastructure in the country, rising demand for natural gas from power and industrial sectors and favourable government policies makes LNG a commercially viable and suitable fuel for various end user[s] in India. As a result, LNG demand is forecast to witness robust growth over the next 5 - 10 years."

Edited from press release by

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