India’s gas demand to nearly double by 2040

However, local production is seen to fall short.

Amidst population growth, economic expansion, and the shift toward renewable energy, India is projected to nearly double its gas consumption to 113.7 billion cubic metres (bcm) by 2040 from 65 bcm in 2023, according to Rystad Energy's latest research.

Rystad also predicts India will continue to rely on gas imports despite a 51% increase in domestic production by 2025.

Kaushal Ramesh, vice president, Gas & LNG Research at Rystad Energy, said the country’s liquefied natural gas (LNG) sector is experiencing significant growth. This could be supported by its continued dealings with the Middle East, he said.  

“The geographical proximity of the two regions, combined with the substantial volume of uncontracted LNG production in the Middle East, presents an excellent opportunity for India to secure favourable terms – it’s an ideal buyer-seller relationship that could help fuel India’s needs,” said Ramesh.

“The nation is well-positioned to attract aggressive targeting from Middle Eastern producers and offtakers, with nearly 100 million tonnes per annum of Middle East LNG remaining uncontracted by 2035,” he added.