India's LNG Market to Reach USD 30.7bln by 2025
India Natural Gas and LNG market is expected to grow from US$ 19.7 billion in 2015 to US$ 30.7 billion by 2025 at a CAGR of 5.06% between 2016 and 2025.
According to a report by Research and Markets, natural gas including Regasified Liquefied Natural Gas (R-LNG) in India has been widely recognized as the fuel with multiple promising aspects.
The present situation of the gas sector in India is going through multiple challenging phase. Due to its high macroeconomic growth visions and increasing population, the country is facing major challenge in terms of growing energy demand and greenhouse gas emission.
Therefore, the appearance of natural gas is coming into existence with larger force. These situation makes government to take some crucial steps in order to increase consumption of natural gas over other tradition fuels in the gas sector on numerous causes such as domestic gas availability, infrastructure creation, affordability, pricing and government regulations.
Meanwhile, a Business Standard report quoting Global oil major Royal Dutch Shell says that India may see at least six times growth in Indian gas market by 2030 from the current levels. It adds that liquefied natural gas (LNG) may be the largest contributor to it.
The prediction comes at a time when India is trying to increase the share of gas in the overall energy mix to over 15 per cent by 2030.
Currently, India is the fourth largest LNG importer after Japan, Korea, and China, and has four LNG terminals with close to 22 million metric tonne (mt) of re-gasification capacity per annum. "Based on current share of 7 per cent, Indian gas market may grow 2.5 per cent.
