Natural gas is set to play an increasingly important role in the global energy mix. Currently, gas consumption is 24% of the total primary energy consumption globally and global gas demand is projected to increase from 3200 BCM now to 4500 BCM by 2030 thus registering a growth rate of almost 40%. Natural gas production in India in 2012-13 was 105 MMSCMD as compared to total
demand of 275 MMSCMD. The total LNG imports in India in 2012-13 were 52 MSCMD i.e. 26.5% of total gas consumption. The gas demand is expected to increase to 470 MMSCMD by the end of 2017.
However, given the domestic gas supplies outlook, sluggish progress with commercial exploitation of unconventional resources; and also, uncertain schedule in transnational pipeline projects it is evident that India will need larger and larger imports of LNG to meet the overall gas demand besides meeting the gas requirements from various sectors. Moreover the recently proposed gas price hike is set to change the dynamics of natural gas business in India.