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Oil and Gas Majors in India: Co-creating the Gas and LNG Market

First Estimates - May 2020 - 62 pages – PDF, XLSX format
The Indian gas sector is at a turning point. Strong growth is expected in gas and LNG demand driven by favourable policies, rising investment in downstream infrastructure by domestic and foreign companies and the availability of competitive LNG prices. India’s growing urgency to embrace cleaner fuels has increased the importance of natural gas in national energy policies. Together with renewables, natural gas is seen as a solution to address critical energy challenges in India. The strong government push to accelerate its penetration in the energy mix has materialised in concrete policy actions to establish key infrastructure, including the building of inter- and intra-state pipelines, LNG terminals, CGD networks and CNG/LNG refuelling stations.

The entry of big players into the downstream gas market, in partnerships with strong Indian partners, offers a key leverage to the Indian vision to realise a gas market-based economy. They can deliver competitive and affordable LNG supplies and accelerate gas infrastructure build out, thus solving two key bottlenecks on the Indian gas market. Energy majors will facilitate and accelerate gas market growth and enlarge the gas market with innovative solutions adapted to Indian conditions. A larger gas sector augurs well with Indian economy as well as for the environment and is a win-win situation for all stakeholders.

While the COVID-19 crisis has introduced an additional uncertainty to natural gas demand growth, the Indian gas market fundamentals are robust and long-term growth propects remain strong.