India's Gas Production Market to Grow by 26% During 2014-19
India’s natural gas market, in production volume terms, is projected to grow at a CAGR of around 26% during 2014-19, says a report published by TechSci Research.
According to the report titled India Natural Gas Market Forecast & Opportunities, 2019, demand for natural gas is increasing significantly in India due to various factors such as rising concerns towards carbon emissions coupled with the country's increasing production and infrastructure development.
Increase in natural gas production by leading companies such as Reliance India Limited (RIL), Oil and Natural Gas Corporation (ONGC) and Cairn India Limited is expected to increase the consumption of natural gas, the report says.
Natural gas production from unconventional resources and imports in the form of LNG are also forecast to rise in order to bridge the natural gas demand-supply gap in the country, the report adds.
In India, the major natural gas application areas include power generation, transportation, domestic fuel, and fertilizers.
Over the next five years, the demand from these sectors is forecast to remain robust. Benefits such as cost-effectiveness, clean burning and safety in operations as compared to other conventional fuels is driving the demand for natural gas in the country.
The report reveals that the country's western region has the highest consumption of natural gas, and the region is expected to remain the leader over the forecast period 2014-19.
However, southern region is growing with significant pace on account of presence of KG basin and expanding pipeline network. The government is also promoting the usage of natural gas by implementing new pricing mechanism, which would be effective from 1stApril, 2014.
"In India's natural gas market, power generation accounts for the highest consumption of natural gas, predominantly due to the environmental and economic benefits offered by natural gas in power production. The power generation sector is expected to remain the largest consuming sector due to anticipated commissioning of a number of natural gas power plants in the country over the next five years", said Karan Chechi, Research Director with TechSci Research.
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