Archive · 26 Jul 2026
India's Gas Demand Growth Needs Reforms
India wants to use more natural gas for energy, but it needs to make some changes first.
Right now, India gets a lot of its gas from other countries, and this can be risky because things like wars or price changes can disrupt the supply.
The report says India needs to build more infrastructure, like pipelines and terminals, to use more gas.
It also needs to change some rules to make gas cheaper and more available.
This will help India use more gas and less coal, which is better for the environment.
But some people think coal is still a better option for India because it's cheaper and more reliable.
The report says that if India makes these changes, it can use more gas and become less dependent on other countries for energy.
India needs to expand LNG import capacity and invest in transmission and distribution infrastructure to increase gas consumption.
Reforms to pricing mechanisms and market access are essential to support sustained growth in gas demand.
India is heavily dependent on imports for natural gas and LPG, with domestic output meeting only 50-52% of demand.
The Strait of Hormuz is a major transit route for India's energy imports, and disruptions can expose India's vulnerability.
Lower global LNG prices and market reforms could make gas more attractive for India, but infrastructure bottlenecks and market constraints need to be addressed.
- Who
- International Gas Union (IGU)
- What
- Report on India's natural gas demand growth
- When
- Published on July 26, 2026
- Where
- India
- Why
- To highlight the need for reforms and infrastructure investment to unlock India's next phase of gas demand growth
Pro-Gas Expansion
Pro-Coal Continuation
Energy Source Viability
Pro-Gas Expansion
Gas is a cleaner and more efficient energy source that can help India reduce its carbon footprint and meet its climate goals.
Pro-Coal Continuation
Coal is a more reliable and cost-effective energy source for India, given its abundant domestic reserves and established infrastructure.
Infrastructure Investment
Pro-Gas Expansion
Investment in gas infrastructure, such as transmission and distribution networks, is necessary to expand gas usage and reduce dependence on coal.
Pro-Coal Continuation
Investment in coal infrastructure, such as new power plants and transportation networks, is more practical and cost-effective for India's energy needs.
Market Reforms
Pro-Gas Expansion
Market reforms, such as liberalizing LNG terminal capacity bookings and system entry charges, are necessary to make gas more competitive with coal.
Pro-Coal Continuation
Market reforms, such as deregulating coal prices and reducing regulations on coal power plants, are necessary to make coal more competitive with gas.
- Domestic Gas Output
- 50-52% of India's demand
- LPG Imports
- 60-65% of India's demand
- Primary LNG Suppliers
- Qatar, Australia, US, Russia
- Strait of Hormuz
- Major transit route for India's energy imports
- Gas Pricing Mechanism
- Linked to oil prices since 2022
- Domestic Gas Price
- Above $7 per million British thermal units