City gas distribution to drive India's gas demand

CGD sector will drive India's ambition to raise share of natural gas in energy basket to 15% from 7%

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NEW DELHI: The city gas distribution (CGD) sector is expected to surpass fertiliser plants this year to become the largest consumer of natural gas in India, thanks to the fast growth of CNG and piped gas networks, industry leaders said on Wednesday.

CGD, which encompasses supply of CNG as fuel to automobiles, and piping gas to household kitchens for cooking as well as to industries, accounts for 21.22 per cent of the near 200 million standard cubic meters per day of gas consumption in the country.

Natural gas consumption is likely to rise to 300-250 mmscmd in the next 7-10 years, GAIL Director (Marketing) Sanjay Kumar said while speaking at the 11th CGD Conference here. "Fertiliser sector consumes 60 mmscmd and this is likely to remain the same as no new fertiliser plants are on the anvil," he said. "CGD sector consumption could go up to 100 mmscmd from 41.1 mmscmd usage in February/March 2025."