Mumbai, March 24 (IANS). The Government of India aims to convert the country into a gas -based economy, with which the contribution of urban gas distribution (CGD) is estimated to be 25 percent from 20 to 2030 in FY 2024. This information was given in a latest report released on Monday.
During the financial year 2025-30, the amount of gas consumption for the region is expected to grow from a cumulative average growth rate (CAGR), which will be supported by capital expenditure (capex) of Rs 30,000 crore during FY 2025-27.
According to the report of CARAMARAI Ratings, the CGD region ranked as the second largest consumer after the fertilizer industry in India’s total natural gas consumption in FY 2024.
Historically, there has been a steady increase in CGD consumption with a temporary decline in FY 2023 amidst a sharp increase in natural gas prices after the Russia-Ukraine War. However, demand improved in FY 2024.
Tej Kiran Ghatamneni, assistant director of CARAIAD Ratings, said, “CGD consumption is expected to continue to increase in CNG, which will be supported by an increase in CNG-purified vehicles and fueling stations.”
PNG-D Penetration has immense possibilities, compared to LPG in the south, east and north-east parts of the country, its share is only 1.5–2 percent.
The government aims to convert the country into a gas -based economy and increase the share of natural gas in primary energy mixture by 2030 to 6.5 percent by 2024.
The report states that in this context, the ‘urban gas distribution industry’ plays an important role in increasing the contribution of natural gas in India’s energy mix by ensuring final-mile connectivity for consumers.
Some of the major regulators are competent for this sector with the government’s effort to increase access to clean fuel.
-IANS
SKT/CBT
