Project Aim

Gas consumption in India, as in Saudi Arabia, has grown more slowly than overall energy consumption, leading to a loss of market share in the national energy basket. This is in sharp contrast to targets laid out in various policy statements over time that called for a rising share for gas in India, to meet its rapidly rising energy demand efficiently and in an environmentally friendly manner. The following research questions will help to assess the gas market potential in India and identify policy directions in this sector:

1) What are the fundamental and policy design barriers to faster growth in gas consumption in India, and can these be overcome?

2) What are the untapped opportunities for increasing the gas supply in the country, from domestic production as well as imports, and what might constrain any increase?

3) What lessons in policy and market design could India adopt from other rapidly growing gas markets, especially those with similar industrialization and environmental targets? The policy directions identified here would be of value to Saudi Arabia, which also seeks to increase the use of gas in its economy.

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