India's House Panel Advocates for Increased Domestic Gas Production Amid Rising LNG Import Dependence
India's reliance on LNG imports has surged to 50% of its natural gas needs, expected to reach 40 MMT annually by 2030. The House panel recommends boosting domestic production to enhance energy security and reduce import dependency.
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India's domestic natural gas production is projected to rise modestly from 36.11 BCM in 2024-25, up from 33.66 BCM in 2014-15. The parliamentary committee highlighted the country's estimated natural gas reserves at 1,094.19 BCM, with a significant portion located offshore.
To mitigate the risks associated with increased LNG imports, which could impact energy security and pricing, the committee advises strengthening long-term LNG sourcing and enhancing domestic production capabilities. It also pointed out that delays in the Open Acreage Licensing Programme (OALP) hinder exploration efforts, emphasizing the need for improved inter-ministerial coordination to streamline operations.
Additionally, eight operational LNG regasification terminals exist, with plans to expand capacity to around 68 MMTPA by the decade's end. Enhanced infrastructure development, especially along the eastern coast, is crucial for balanced growth in the sector.
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