Natural gas is no longer merely a transition fuel but a long-term “destination fuel” for India, with a permanent role in meeting the country’s rapidly growing energy demand, Sandeep Kumar Gupta, Chairman and Managing Director of GAIL (India), said at India Energy Week 2026 in Goa on Thursday.
Speaking in an interview on the sidelines of the event, Gupta said India’s growth aspirations will be underpinned by sustained energy consumption, creating space for all fuels to grow simultaneously. He noted that India is expected to account for around 35 per cent of global energy demand growth in the coming years, reinforcing the case for natural gas as a stable component of the energy mix.
While acknowledging that gas consumption has not grown at the pace envisioned under the government’s target of raising the share of gas in the energy mix from 6 per cent to 15 per cent by 2030, Gupta said the primary constraint has been pricing rather than policy uncertainty. He pointed to the sharp rise in global gas prices following the Russia–Ukraine conflict as a deterrent for new consumers.
However, Gupta expressed confidence that global liquefied natural gas (LNG) prices will normalise over the medium term as new supply comes online from the US, Qatar and upcoming projects in regions such as Argentina, Canada and Alaska over the next four to five years. “With ample LNG supply, prices will definitely normalise, and that will see strong growth in LNG consumption in the country,” he said.
He added that in the city gas distribution segment delays and high charges related to permissions for laying infrastructure in cities remain a challenge, an issue GAIL is engaging with states to resolve.
Gupta said that India must intensify efforts to make new gas discoveries and fully realise the potential of existing ones to reduce dependence on imports. Currently, around 50 per cent of LNG consumption is met through imports, leading to significant foreign exchange outgo.
On hydrogen, Gupta said large-scale blending or transport through gas pipelines will only make sense once green hydrogen becomes commercially viable. He noted that current green hydrogen costs remain unviable. However, he said GAIL is preparing its pipeline network to be hydrogen-ready over time as safety standards evolve and costs decline.
He added that GAIL continues to seek new pipeline authorisations and has filed a review petition with the Petroleum and Natural Gas Regulatory Board seeking revision of pipeline tariffs, which it believes are justified.
