India and fossil gas

This article is part of the Global Energy Monitor coverage of fossil gas

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India is the world's second most populous country, with a population of 1,406.6 million people as of 2022. The GDP growth rate was 8.7% in 2021 and is forecasted at 7% in 2022 and 7.2% in 2023.

The country ranks third in the world in terms of energy consumption and fourth in terms of LNG imports. However, thanks to increasing gas prices, limited domestic resources, and low demand, over 14 GW of gas-based power generation capacity in India is currently idle. Most of the remaining gas-powered plants are also operating below efficiency. LNG terminal utilization also remains low (it peaked at 64% in the last three years), further indicating the under-utilization of costly infrastructure.

Fossil Gas in the Fuel Mix

Total fossil gas consumption in the country during the financial year 2021-22 (April to March) was 63,907 MMSCM as compared to 60,815 MMSCM in the previous year. This includes 33,131 MMSCM of domestic net production and 30,776 MMSCM of imported LNG.

The biggest consumers of fossil gas are the fertilizer, city gas distribution (CGD), power, refinery, and petrochemical sectors with shares of 34%, 22%, 13%, 7%, and 2% respectively in August 2022. Over 50% of LNG is consumed by the fertilizer industry, and the power sector is the second biggest consumer.

India's total electricity generation capacity is 4,07,797 MW. Half of this generation capacity is owned by the private sector, while the central government and state sectors have a share of 24.3% and 25.7% respectively.

The share of fossil gas in the electricity capacity mix is 24,824 MW (6.1%). The remaining is distributed between coal (204.079 MW, 50 %), lignite (6.620 MW, 1.6%), diesel (562 MW, 0.1%), hydro (46,850 MW, 11.5 %), nuclear (6,780 MW, 1.7%), and renewables (118.080 MW, 29%).

India plans to increase the share of fossil gas in its energy mix from 6.3% in 2021 to 15% by 2030 in a bid to become a 'gas-based economy'. To achieve this target, the government has announced:

• Expansion of National Gas Grid to about 33,500 km from current 21,715 km.
• Expansion of City Gas Distribution (CGD) network
• Setting up of liquefied natural gas terminals
• Allocation of domestic gas to compressed gas (Transport) / piped gas (Domestic) in no cut category.
• Allowing marketing and pricing freedom to gas produced from high pressure/high temperature areas, deep water & ultra-deep water and from coal seams.
• Sustainable Alternative Towards Affordable Transportation (SATAT) initiatives to promote Bio-CNG.

In its most recent NDC submission, India has committed to reducing the emissions intensity of its GDP by 45% by 2030 from the 2005 level. It has also committed to achieving about 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030, with the help of transfer of technology and low-cost international financing, including from Green Climate Fund (GCF).

Fossil Gas Production, Imports, and Transportation

India's balance of recoverable reserves of fossil gas stand at 1372.64 BCM, out of which 882.7 BCM (64.3%) come from offshore resources and 12.1% come from Assam. ONCG estimated that Cambay, Krishna Godavari, Cauvery, Ganga and Assam basins have 187.5 TCF of shale gas reserves. Additionally, the Central Mine Planning and Design Institute (CMPDI) estimated shale gas resources of 45.8 TCF in Gondwana basin.

Fossil gas production during the year 2021-22 was 33,131 MMSCM as compared to production of 27,784 MMSCM in 2012-21. The country also imported 30,776 MMSCM of LNG during the financial year 2021-22 (April to March), which was slightly more than the quantity imported the previous year (33,031 MMSCM).

Most of the LNG (over 85%) imported by India is through long-term contracts with suppliers, primarily from the UAE, Nigeria, Angola, US and Australia. The unmet need is fulfilled by purchasing LNG on the spot market.

As of June 2022, the country has a network of 14,449 km of operational common carrier gas pipelines. Another 6,180 km of pipelines are partially commissioned, and 13,186 km are under construction.

India has six LNG import terminals, including Petronet LNG Ltd.'s Dahej terminal (17.5 MMTPA), Shell Energy India Pvt. Ltd.'s Hazira terminal (5.2 MMTPA), Konkan LNG Ltd.'s Dabhol terminal (5 MMTPA), Petronet LNG Ltd.'s Kochi terminal (5 MMTPA), Indian Oil LNG Pvt Ltd.'s Ennore terminal (5 MMTPA), and GSPC LNG Ltd.'s Mundra terminal (5 MMTPA). According to a draft LNG policy developed by the Ministry of Petroleum and Natural Gas, the re-gasification capacity will be increased to 70 MTPA by 2030 and 100 MTPA by 2040.

As of 2022, there are no pipelines that import gas into India.

Government Agencies and other Key Players in Gas Sector

The Ministry of Petroleum & Natural Gas is concerned with the exploration and production of oil and gas, refining, distribution and marketing, import, export and conservation of petroleum products.

Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL) are the largest fossil gas exploration and production companies in India, with 76.3% (21.87 BCM) and 8.6% (2.48 BCM) of shares respectively.

GAIL, Gujarat State Petroleum Corporation (GSPL), Pipeline Infrastructure Limited (PIL), Indian Oil Corporation (IOCL), Assam Gas Company Limited (AGCL), GSPL India Gasnet Limited (GIGL), Reliance Gas Pipelines Limited (RGPL), and GSPL India Transco Ltd (GITL) are the key players in the downstream gas sector.