The rapid expansion of piped gas networks and CNG is anticipated to make the city gas distribution (CGD) sector India's top natural gas consumer this year, surpassing fertilizer factories, according to industry leaders.

CGD, which includes supplying CNG as fuel for cars and piping gas to homes and businesses for cooking, makes up 21.22 percent of the nation's daily gas usage, which is close to 200 million standard cubic meters.

Speaking at the 11th CGD Conference here, GAIL Director of Marketing Sanjay Kumar predicted that natural gas demand would increase to 300–250 mmscmd during the next seven to ten years.

"Fertiliser sector consumes 60 mmscmd and this is likely to remain the same as no new fertiliser plants are on the anvil," he said.

"CGD sector consumption could go up to 100 mmscmd from 41.1 mmscmd usage in February/March 2025."

Anjani Kumar, Head (Gas Origination & BD), Shell Energy LNG, said, "CGD could very well become the largest consumption sector this year itself."

India's goal to increase the proportion of natural gas in the energy basket from the present seven percent to 15 percent will be fueled by the CGD sector.

 

Unfortunately, the nation must inevitably rely on LNG imports as domestic production cannot keep up with demand.

He claimed that 80 percent of the 35 mmscmd increase in gas demand over the past three years has been satisfied by LNG.

Currently, imports account for almost half of the gas requirement.

India's CGD industry is expanding quickly thanks to government programs, higher infrastructure spending, and a move to cleaner energy sources. In the most recent auctions, city gas licenses for practically the whole nation were distributed. Currently, there are more than 8,000 CNG stations in the nation, and 1.5 crore families cook with piped natural gas.

Also Read: Homegrown Ice Cream Brands that Can Cool You Off the Sweltering Heat

According to national oil firms' predictions, domestic gas output might increase to 130–135 mmscmd during the next four to six years, according to Kumar of GAIL. According to him, the production will "mature" by then and is not likely to increase.

As fields mature, peak domestic production won't endure long, according to A K Singh, MD & CEO of Petronet LNG Ltd. "We will be dependent on imported gas in future."