India’s Plan to Nearly Double Natural Gas Pipeline Capacity Buildout

 

     India is a developing country with a large population and a growing demand for all forms of energy that will continue into the future. Coal, oil, and natural gas and their infrastructure are very much in demand. As I noted recently in a post about India’s coal mine methane emissions, India is planning to build new mines, including more underground mines, and thus India’s greenhouse gas emissions are expected to increase. Coal-fired plants and gas-fired plants are being built and solar panels and wind turbines are being deployed. Oil and gas drilling is ongoing. All of these energy sources are supporting a fast-growing economy.

“According to predictions of the Indian Ministry of Finance, this year the Indian economics is expected to grow by 7.5%, that will make it the world’s third-largest and the world’s fastest growing economy.”

     According to Indian Prime Minister Narendra Modi, the government is ready to invest at least $67 billion in the next five to six years to develop the domestic natural gas sector. A big part of this investment will be investment in pipelines. India has about 14,000 miles of natural gas pipelines and India currently has 13,331 miles of pipeline projects planned or under construction. This would basically double the country’s pipeline capacity. This is expected to increase the energy share of natural gas in India from 6% to 15%. Distribution pipelines in rural areas are also expected to be built to give more access to residential consumers.

     Rystad Energy projects India’s natural gas demand to nearly double by 2040 with consistent demand growth. Middle Eastern LNG imports have grown in recent years and are expected to continue to grow. The fertilizer, refining, and petrochemical industries are growing as is the city gas distribution (CGD) network. India still imports fertilizer but expects to increase domestic urea fertilizer output which uses natural gas as a feedstock. They note:

 

“India’s CGD network has expanded rapidly in recent years, with the number of CNG stations rising more than fivefold since 2015 to 5,710 by April of last year and the number of {piped natural gas} PNG connections more than quadrupling to 12 million over the same period."

     India and China have benefited from the availability of cheap Russian oil via Ukraine war sanctions. India imports about 50% of its gas but also has significant domestic reserves both onshore and offshore. China is also building out its natural gas network in a similar way.

The effort in India is known Nation One Gas Grid scheme. India is also building long and large transmission pipelines including the 1180-mile (1900-km) Jagdishpur-Haldia Phase II pipeline, which is being built by state-owned Gas Authority of India Limited (GAIL), and the 1139-mile (1834 km) Mehsana–Bhatinda pipeline. Areas in the north and northeast of the country, and in Kashmir and Ladakh are expected to be networked as well.

     India is also investing to replace outdated existing pipeline infrastructure. That should also help decrease total leakage. India is also building out oil pipelines. According to Pipeline & Gas Journal:

 

“According to a recent study of Global Energy Monitor, India is constructing 742 miles (1,630 km) of oil transmission pipelines currently, ranking second globally in the pipelines under construction category.” 

 

“Among the major projects are the 742-mile (1,630-km) Paradip Numaligarh Crude Pipeline (that will connect two Indian major eastern states Odisha and Assam) and (1,194-km) New Mundra–Panipat Oil Pipeline, which will connect the Indian most Western state Gujarat and its northern part in the state of Haryana.” 

 

“Both pipelines will be among the longest oil pipelines in the world after their commissioning. Overall, according to India Infrastructure Research, at least 15 oil pipeline projects are currently implemented within the country. Most of those are operated by such local majors as Indian Oil Corporation Limited (IOCL) and Hindustan Petroleum Corporation Limited (HPCL).” 

 

     India is also planning to supply oil and natural gas to neighboring countries. The India-Bangladesh Friendship Pipeline (IBFP) which is designed to transport diesel from India to Bangladesh is currently suspended due to political instability in Bangladesh. Another natural gas pipeline is expected to connect to Bangladesh and Myanmar, potentially accessing Myanmar’s 22.5TCF of natural gas reserves. India expects to compete with China and hopes to create a thriving Northeast Asian oil & gas hub.

 

 

References:

 

India Sets $67 Billion Goal to Expand Gas Pipeline Network by 9,630 Miles. Pipeline & Gas Journal. October 2024, Vol. 251, No. 10. India Sets $67 Billion Goal to Expand Gas Pipeline Network by 9,630 Miles | Pipeline and Gas Journal (pgjonline.com)

Natural Gas Pipelines Network in India - As on 31.03.2023. PNGRB. Government of India. NGPL-08062023.pdf (pngrb.gov.in)

India’s domestic gas demand to double by 2040, local production falls short. Kartik Selvaraju, Kaushal Ramesh, Allison Anne Samuel, and Kartik Selvaraju. Rystad Energy. October 23, 2024. India’s domestic gas demand to double by 2040, local production falls short (rystadenergy.com)