India gas output to peak 2025, fall afterwards, says Wood Mackenzie report
This story was originally published at 15:26 IST on 6 February 2025
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MUMBAI – India's gas production is set to peak this year, rising by 4.5%, after which it is likely to decline by an average 3.6% on year till 2030 due to structural declines in mature fields and delays in the development of new projects, Wood Mackenzie said in a report. "After 2030, production is expected to see a 9% annual decline through 2040, driven by the exhaustion of mature fields and slower-than-expected discoveries," it said.
However, the narrative could change if the Oilfields Amendment Bill introduced in August 2024 is implemented effectively, it said. The bill aims to increase investment in oil and gas exploration and production. Domestic natural gas production fell 2.1% in December, with gross production recorded at 3.06 billion cubic metres, according to media reports.
Domestic LNG demand is expected to exceed 37 million tonnes per annum by 2030 and 88 million tonnes per annum by 2050 as the country's demand for gas is seen rising while its production shrinks, it said. LNG will account for about two-thirds of India's gas consumption by 2032 and the country will become the third-largest importer of LNG after China and Japan. In 2024, LNG imports were at a record 26 million tonnes per annum, accounting for over half of the country's gas consumption, it said.
Wood Mackenzie expects greater gas availability for new industrial units and the potential expansion of refineries and petrochemical plants will boost Indian industrial gas demand to around 63 billion cubic metres by 2040. "Sizeable growth will come from the city gas distribution (CGD) sector, which includes the transport, residential and commercial segments, as well as small industry. The CGD sector's share of the gas consumption mix is expected to increase from 25% to 32% by 2030," it said. End
Reported by Ashutosh Pati
Edited by Akul Nishant Akhoury
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