India to See $67 Billion Investments in Gas Sector in 5-6 Years: PM Modi

Investments in the Gas Sector

Prime Minister Narendra Modi announced that India is set to witness US$ 67 billion in investments in the gas sector over the next 5–6 years, as part of a broader wave of “unprecedented” investments in the energy sector to meet the needs of the world’s fastest-growing major economy. Speaking at the second edition of India Energy Week, he highlighted that the government’s reforms are driving a rise in domestic natural gas production, aligned to increase the share of natural gas in India’s energy mix from the current 6.3% to 15% by 2030.

• During the fiscal year 2023–24 (Provisional), natural gas consumption for energy purposes rose by 20.58%, increasing from 36,383 BCM in 2022–23 to 43,872 BCM. Meanwhile, non-energy use grew by 11.52%, rising from 22,319 BCM to 24,890 BCM over the same period. These investments in the gas sector reflect a strong upward trend in natural gas demand across multiple sectors.
• To support this transition, the government has implemented several initiatives, including expanding the National Gas Grid Pipeline and City Gas Distribution (CGD) network, developing LNG terminals, and prioritizing domestic gas allocation for transport and household sectors.
• Natural gas is increasingly recognized as a key transition fuel in India’s journey toward achieving net-zero carbon emissions by 2070 leading to investments in the gas sector. Natural gas is a cleaner alternative to more polluting fossil fuels like coal, used in electricity generation, fertilizer production, transportation (as CNG), and household cooking. Modi emphasized that India’s strong economic growth drives higher energy demands, making investments in investments in the gas sector that promote clean and efficient fuels like natural gas essential for sustainable development.
• AI is transforming the natural gas sector by optimizing supply chains, reducing waste, and improving inventory management. It enhances asset maintenance with predictive monitoring, cutting costs by 20–30%. AI detects methane leaks precisely, supports carbon capture innovation, and balances energy grids by forecasting renewable output. At a strategic level, AI aids in decision-making by analysing market trends. Accenture projects energy-sector spending on generative AI to grow 3.5x by 2030, impacting 44% of industry tasks.