A study issued by TechSci Research expects India’s LNG demand to soar from 64 million cubic meters per day in 2015 to over 306 mcm per day by 2021.
The expected compound annual growth rate (CAGR) is at 16.89 percent for the period between 2015 to 2021, according to the study.
The report notes that India’s natural gas infrastructure in 2015 stood at 15,808 km with an additional 11,397 km of pipelines expected to be added over the next few years.
India’s power sector consumes nearly one-third of the total natural gas produced in the country and the government is focusing more on the gas based power projects.
“Increasing focus on the expansion of gas pipeline infrastructure in the country, rising demand for natural gas from power and industrial sectors and favorable government policies makes LNG a commercially viable and suitable fuel for various end user in India. As a result, LNG demand is forecast to witness robust growth over the next 5-10 years,” according to TechSci Research’s Karan Chechi.
LNG is expected to play an instrumental role in filling the gap between demand and supply of natural gas in India where domestic natural gas production will struggle to cope with the projected demand growth.
LNG World News Staff