ABSTRACT
India is currently the fourth largest energy consumer in the world. With its GDP projected to grow at eight per cent per annum, energy demand is expected to rise to around fi ve to six per cent per annum, which, in effect, means doubling of current consumption in about 12 to 13 years. While coal has been the major component of India’s energy basket, gas, which is currently at around nine per cent, could well grow to about 15 to 20 per cent, if India is able to meet demand. Gas supply is currently around 100 MMSCMD1 which includes both domestic gas and imported liquefi ed natural gas (LNG) and once gas is freely available the demand for the fuel is likely to rise appreciably. Presently, the fertilizer and power sectors are the major consumers of gas at 29 per cent and 40 per cent respectively with the balance being consumed in the industrial and domestic sectors. With large gas discoveries in the KG Basin off India’s south-eastern coast, the domestic gas position is likely to improve considerably but the need for imports will continue.
