The India Natural Gas Market reached a size of 61.28 Billion Standard Cubic Meters in 2024. It is projected to grow at a CAGR of 3.62% during the forecast period 2025-2033, reaching 86.63 Billion Standard Cubic Meters by 2033. This growth is driven by government-backed city gas distribution, pipeline infrastructure expansion, and integration of natural gas in hydrogen production, supporting residential, commercial, industrial, and transportation demand. The report presents a thorough review featuring the India Natural Gas Market Size, share, trends, and research of the industry.

STUDY ASSUMPTION YEARS

• Base Year: 2024

• Historical Years: 2019-2024

• Forecast Period: 2025-2033

INDIA NATURAL GAS MARKET KEY TAKEAWAYS

• Current Market Size (2024): 61.28 Billion Standard Cubic Meters

• CAGR (2025-2033): 3.62%

• Forecast Period: 2025-2033

• Government initiatives are expanding City Gas Distribution (CGD) networks, aiding infrastructure growth in urban and semi-urban areas.

• Pipeline infrastructure development is enhancing gas accessibility and supply reliability, with plans to expand pipeline by 10,805 km by 2025.

• Integration of natural gas in hydrogen production, particularly blue hydrogen with carbon capture and storage, presents new market opportunities.

• Key sectors driving demand include residential, commercial, industrial, and transportation.

• Increasing investments and regulatory support are strengthening supply chains and promoting cleaner energy adoption.

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MARKET TRENDS

Increasing City Gas Distribution (CGD) Network: Government initiatives aimed at enhancing piped natural gas (PNG) availability for homes and compressed natural gas (CNG) for transportation are propelling infrastructure advancements. Supportive licensing processes and public-private collaborations promote network growth in urban and semi-urban regions. Heightened user awareness and economic benefits over traditional fuels encourage uptake in residential and commercial sectors. The demand for CNG in vehicles is growing due to cleaner transportation pushes, particularly in urban areas. In 2024, AG&P Pratham planned to invest Rs 80 billion to expand its CGD network by adding 2,000 CNG and LNG stations, targeting 150 million clients focused on South India, Bhopal, and Madhya Pradesh.

Infrastructure Expansion and Pipeline Connectivity: Rapid growth of natural gas infrastructure, especially pipelines, is improving accessibility and supply dependability. Investments in interstate pipeline systems enable efficient delivery to industrial, commercial, and residential consumers. India's intention to extend pipeline infrastructure by 10,805 km in 2025 represents a 62.6% increase, aiming to complete the national gas network and ensure consistent gas availability nationwide. Enhanced connectivity also facilitates incorporation of new gas fields and LNG terminals. Technological advancements in pipeline surveillance help reduce leaks and boost operational efficiency.

Integration of Natural Gas in Hydrogen Production: The increasing focus on hydrogen as an alternative energy source is creating fresh opportunities for natural gas. Blue hydrogen, produced from natural gas with carbon capture and storage, serves as a transitional solution towards a hydrogen economy. Government programs promote investments in gas-derived hydrogen technologies. Industries such as refining, chemicals, and steel are increasingly using hydrogen to lower carbon emissions, driving natural gas demand. Technological improvements in steam methane reforming and autothermal reforming are raising hydrogen production efficiency. Notably, a 2025 partnership between Cummins Accelera and GAIL (India) Limited aims to accelerate green hydrogen adoption through production, blending, transport, and storage collaborations.

MARKET GROWTH FACTORS

The expansion of City Gas Distribution (CGD) and growing access to piped natural gas and compressed natural gas are primary growth drivers. Government initiatives supporting easier licensing and public-private sector collaborations are propelling infrastructure improvements in both urban and semi-urban locations. Increased consumer awareness of financial advantages and environmental benefits over traditional fuels further support demand growth across residential and commercial segments.

Pipeline infrastructure growth is another key factor contributing to market expansion. Planned additions of 10,805 km to the national pipeline system by 2025 will enhance gas supply security and regional network stability. This development also allows integration of new gas fields and liquefied natural gas terminals, progressing the national gas grid completion and enabling broader accessibility to natural gas across India.

Natural gas’s role as an interim fuel in hydrogen production is generating new development prospects. The government’s emphasis on hydrogen as a future energy source incentivizes investments in technologies like blue hydrogen, which combines natural gas with carbon capture. Collaborations between firms such as Cummins Accelera and GAIL target accelerated adoption of green hydrogen, leveraging natural gas for hydrogen production, transport, and storage, which augments the demand potential in sectors like transportation, energy, and steel manufacturing.

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MARKET SEGMENTATION

Type Insights:

• Compressed Natural Gas: Focuses on usage primarily as fuel for vehicles and transportation, benefiting from government incentives for cleaner energy.

• Piped Natural Gas: Mainly consumed by residential and commercial customers through city gas distribution networks expanding in urban and semi-urban areas.

• Liquified Petroleum Gas: Used in various applications, serving as an alternative energy source alongside other natural gas forms.

Regional Insights:

• North India: Represents one of the major regional markets with growing demand for natural gas across residential, commercial, and industrial sectors.

• South India: Key growth area targeted by investments and expansions, including AG&P Pratham’s infrastructure development plans.

• East India: Part of the comprehensive regional market coverage with increasing natural gas consumption.

• West India: Included among principal regions analyzed for market growth trends and projections.

REGIONAL INSIGHTS

The report identifies South India as a dominant region for growth due to focused infrastructure investments such as those by AG&P Pratham, aimed at expanding city gas distribution networks. The government’s push to increase pipeline infrastructure by 10,805 km nationwide also supports significant gas supply improvements across regions, enhancing accessibility and stable supply. This regional development strengthens natural gas demand in South India and others, fostering comprehensive market growth.

RECENT DEVELOPMENTS & NEWS

In March 2025, Hero Future Energies inaugurated a Rs 1,000-crore green hydrogen plant in Tirupati, Andhra Pradesh, blending green hydrogen with LPG and PNG for industrial heating to reduce CO2 emissions and advance clean energy goals. In October 2024, Adani Total Gas Ltd (ATGL) commenced mixing 2.2-2.3% green hydrogen with natural gas in Ahmedabad, marking India’s largest hydrogen blending project aimed at promoting cleaner energy and reducing emissions.

KEY PLAYERS

• AG&P Pratham

• Cummins Accelera

• GAIL (India) Limited

• Hero Future Energies

• Adani Total Gas Ltd (ATGL)

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