India’s demand for natural gas is anticipated to double by 2040 and triple by 2050 due to expanding industrial needs, population growth, and a shift towards cleaner energy sources. Despite significant increases in domestic production, it will fall short of meeting this rising demand, leading to a growing dependence on liquefied natural gas (LNG) imports.
Qatar and other Middle Eastern suppliers are expected to play a crucial role in meeting India’s energy requirements, especially as natural gas becomes central to reducing coal reliance in the industrial sector.
Currently, natural gas contributes only 6–8% of India’s primary energy supply, a relatively low share compared to coal and renewables. While India has set ambitious renewable energy goals—aiming for 500 GW of non-fossil capacity by 2030—it acknowledges the transitional role of natural gas.
Unlike many countries where gas dominates power generation, India’s use of gas in electricity is limited, with a stronger focus on expanding its coal and renewable capacity to meet growing energy needs.
Industrial growth is driving India’s surging natural gas demand. Fertilizer production, vital for agricultural security, and the refining and petrochemical sectors are major consumers of gas.
India’s Soaring Gas Demand by 2050 Fuels LNG Imports and Industrial Growth Focus
India’s increasing reliance on LNG imports stems from its inability to produce sufficient domestic gas and its lack of pipeline connections with key global producers. The proximity to Middle Eastern gas suppliers offers India favorable opportunities for long-term contracts to secure energy for its expanding economy.
In 2023, LNG imports, primarily from Qatar, accounted for over half of India’s 20 million tons of imported LNG, with additional supplies coming from the UAE and the U.S. These imports are expected to rise as India’s industrial base expands.
India’s economic growth, projected to make it the third-largest global economy by 2028, will drive natural gas consumption to 113.7 billion cubic meters by 2040, more than double the 2023 levels. Although domestic production has grown by 51% since 2020, it will not be enough to meet future demand.
Looking ahead to 2050, industrial use will dominate India’s gas consumption, accounting for 80% of total demand. The refining and petrochemical industries alone will see massive increases in gas use, with consumption for refining growing by over 400% and for chemical production by more than 250%.
These trends highlight natural gas as a critical enabler of India’s industrial expansion and economic growth, even as the country continues its push towards renewable energy and net-zero emissions by 2070.
