Indian Gas-Based Power Plants | FTI Consulting

Indian Gas-Based Power Plants

A Regulatory Paradox

Strategic Communications | Energy, Power & Products (EPP)

April 30, 2019

power plant

India’s emerging gas story is deeply connected with its critical economic transitions in mobility, urbanisation and reliability in an increasingly market based system. India will account for one third of the growth in global energy demand in the coming decades and developing the country’s natural gas markets will aid India’s ability to meet the demands of a growing middle class in a modernising economy.

Move Towards a Gas-Based Economy

As part of its ambition to develop India as a gas-based economy and diversify the energy mix, and increasingly employ gas as a way to meet the climate challenge, India’s Ministry of Petroleum and Natural Gas has set a goal to increase the share of natural gas in India’s primary energy mix from the current 6 percent to 15 percent in the next ten years. India is at an inflection point for gas markets, with supportive government policies, appropriate market structures and a positive investment climate.

With domestic production in short supply, consumption levels devalue potential demand. With India being the world’s 4th largest LNG importer, gas imports have placed significant pressure on the Indian economy with the government looking at ways to improve production whilst allocating gas to critical demand centers such as the City Gas Distribution (CGD) network, fertiliser plants and power plants. However, according to industry estimates, India’s gas deficiency will continue to rise in the coming years.

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