New Delhi: India will need to import about 120 million tonnes of liquefied natural gas (LNG) annually by 2030 to raise natural gas’ share in its primary energy mix to 15 per cent from the current 6.5 per cent, Petronet LNG’s Chief Executive Officer Akshay Kumar Singh said on Thursday, warning that affordability of supplies remains a key challenge.
“As of today, the natural gas consumption in India is about 6.5 per cent of our total primary energy basket, and the government of India’s stated policy is to increase it to 15 per cent by 2030. This will require an almost three and a half to four times increase in natural gas consumption,” Singh said while addressing the ET Energy Leadership Summit 2025 here.
Imports and regasification expansion
India imported 27 million tonnes of LNG last year, up from 23 million tonnes the year before. Singh said this figure will need to rise sharply to align with the 2030 gas share target.
The country has 52.7 million tonnes per annum (mtpa) of regasification capacity, of which only about half is utilised. “In the coming two-three years, we are adding about 20 million tonnes of regas capacity, taking the total to 75 mtpa,” said Singh.
Petronet is expanding its Dahej terminal in Gujarat from 17.5 mtpa to 22.5 mtpa, with completion due in the next four months. It is also setting up a 5 mtpa east coast terminal at Gopalpur in Odisha. Its Kochi terminal, commissioned in 2013, has been running at 25 per cent capacity due to lack of pipeline connectivity, which is expected to be resolved within six months with the Kochi-Bengaluru pipeline.
Infrastructure build-out
Singh said that the expansion of the national gas grid is central to meeting demand. “As of today, almost 25,000 kilometres of transmission line has been completed in the country, and 10,000 kilometres are under execution. Once completed, India will have a 35,000 kilometre transmission network,” he said.
The Petroleum and Natural Gas Regulatory Board has allotted 307 geographical areas covering all 733 districts, targeting piped natural gas supply to 12–12.5 crore households by 2032, up from 1.5 crore at present.
On city gas distribution, Singh said that the number of CNG stations is set to more than double from 8,500 at present to 18,000 in the next six to seven years. CGD consumption is expected to rise from 40 million standard cubic metres per day (mmscmd) now to 140 mmscmd.
Rising demand outlook
Singh noted that while India accounts for 18 per cent of the global population, its share in global energy consumption is just 6 per cent. With the economy projected by the IMF to grow at 6.5 per cent in 2025-26 and 2026-27, compared to global growth of about 3 per cent, energy demand is expected to rise sharply.
“Natural gas will play a major role in replacing coal and liquid fuels. Among the three fossil fuels, natural gas is the least polluting,” Singh said.
Singh highlighted affordability as a central concern. India imports 88–90 per cent of its crude oil needs, and growing dependence on LNG will further add to import exposure. “The major challenge our country faces is sourcing LNG at affordable prices,” he said.
