Natural gas is increasingly being viewed not just as a bridge fuel but as a long-term pillar of future energy systems, particularly for fast-growing economies such as India, industry leaders said during a panel discussion at India Energy Week (IEW) in Goa on Tuesday.
The panel discussion on “Repositioning Natural Gas & Energy Transformation – From Pragmatic Bridging Resource to Pivotal Destination Fuel” brought together global producers, infrastructure providers and India’s gas sector leaders to examine the evolving role of natural gas in a rapidly transforming energy landscape.
Moderated by Simon Flowers, chairman and chief analyst, Wood Mackenzie, the discussion underscored gas’ dual role as a near-term transition fuel and a durable component of future energy systems, particularly for fast-growing economies like India.
Sandeep Gupta, chairman and managing director of GAIL, highlighted natural gas’ strategic importance for India from the perspectives of emissions, affordability and energy security.
He said that about 50 per cent of India’s current natural gas consumption is met through domestic production, a stark contrast to crude oil, where about 90 per cent is imported. “This alone makes gas strategically important from an energy security perspective,” he added.
Gupta pointed to fertilisers and city gas distribution as stable, fast-growing demand anchors. “Because of safety, emissions and affordability, and given the global surplus expected in gas, I believe natural gas will increasingly become a destination fuel for India,” added Gupta.
He said that global gas supply is set to expand significantly with new production hubs emerging in the US, Qatar, Argentina, Canada and Alaska, creating the likelihood of sustained surplus and improved affordability for importing nations like India.
“CNG for transport and PNG for households and industry are seeing strong momentum. Many geographic areas were authorised late, so consumption there is only beginning to scale up,” he added.
Citing projections by the Petroleum and Natural Gas Regulatory Board, Gupta said that India’s gas demand could rise from about 190–195 million metric standard cubic meters per day (mmscmd) today to 300 mmscmd by 2030 under the current financial regime. He said that if natural gas is brought under the GST framework and the 14 per cent excise duty on CNG is removed, consumption could jump to 365 mmscmd by 2030 and over 600 mmscmd by 2040.
On infrastructure, Gupta said that India has 52.7 million tonnes per annum of LNG regasification capacity, operating at roughly 50 per cent utilisation, giving the country room to absorb demand growth quickly as prices soften.
“India is a price-sensitive market, but infrastructure must precede consumption. With falling global LNG prices and the right fiscal support, gas consumption in India can accelerate sharply,” he added.
GAIL operates 18,000 km of gas pipelines, with another 3,000 km set for commissioning, and plans to expand the network to 34,000–35,000 km in the coming years.
From a global supply standpoint, Fatema Al Nuaimi, chief executive officer (CEO), ADNOC Gas, said that the company is investing over $20 billion to expand capacity by nearly 30 per cent by 2029, reflecting long-term confidence in demand. “People and bankers don’t invest billions in infrastructure meant to last just a few years,” she added.
India, she noted, is central to ADNOC Gas’s long-term strategy. Over the past 18 months, the firm has signed 3.2 million tonnes per annum of LNG supply contracts with Indian buyers. Looking ahead, she said 20 per cent of ADNOC Gas’ contracted LNG volumes from the Ruwais LNG project will be supplied to Indian customers by 2029.
She said that natural gas and LNG will remain a core pillar of the global energy system for decades, not merely a bridging fuel, as capital flows decisively into expanding gas infrastructure worldwide.
She added that LNG’s unique role in ensuring grid stability amid growing renewable penetration. “When the wind is not blowing and the sun is not shining, LNG steps in,” Al Nuaimi said, pointing to the rapid deployment of FSRUs and regasification terminals as a game-changer for energy security, especially in fast-growing economies.
“Competitiveness comes from predictability, not volatility,” Al Nuaimi stressed. She highlighted that LNG spot prices can fluctuate three times more than long-term contract prices, making long-term offtake agreements critical for countries planning large investments in fertilisers, CGD networks and industrial capacity.
Reflecting on global energy transitions, Al Nuaimi cautioned against a “one-size-fits-all” approach. “For fast-growing markets, gas plays an increasing role in balancing growth, emissions and reliability,” she said.
ADNOC Gas, she added, has evolved from a destination-based exporter to a portfolio player, securing 80 per cent of its base production under long-term contracts while retaining flexibility to respond to market shifts. “The line between producer and consumer is blurring. The gas market is becoming more liquid and more dynamic, and that’s good for everyone,” she added.
As global LNG supply surges, the real bottleneck lies not in liquefaction but in regasification and last-mile infrastructure, according to Steven Kobos, president and CEO of Excelerate Energy – a global leader in floating storage and regasification units (FSRUs).
“Billions have gone into liquefaction, but regasification has not kept pace. Affordability means nothing if you can’t vaporise the LNG and deliver it to consumers,” Kobos said during the panel discussion.
He said that he sees India as one of the biggest potential beneficiaries of the next LNG growth wave. “LNG is not a switch you flip. It is a system you build, and India has shown how getting ahead of demand allows you to capture affordability and energy security,” Kobos said.
He noted that India has built 52.7 million tonnes per annum of regasification capacity, with only about half utilised in 2025.
Kobos said that the company is keen to expand its footprint in India through flexible partnership models ranging from fully integrated terminals to minority equity stakes. He stressed that operational reliability is critical.
“Our operational uptime last year was 99.9 per cent. When a sovereign counts on you for energy security, dependability is everything,” Kobos added.
The panel converged on the view that natural gas is evolving beyond a temporary bridge fuel into a core, flexible, and scalable energy source, capable of supporting growth, reducing emissions, and complementing renewables.
