India’s Gas Consumption: Sectoral Analysis 2024 vs 2025

Combined Domestic & RLNG volumes comparing 2024 vs 2025, with YoY Growth %.

Priority sectors such as CGD and Fertiliser remain volume-stable, while price-sensitive segments (Power, Sponge Iron) adjust demand sharply in response to gas economics.
The Power sector shows the steepest contraction, driven by milder weather, lower peak demand, and reduced need for gas-based balancing.
Petrochemicals emerge as a clear outlier, with growth supported by higher domestic gas allocation to specific plant, despite softness in the broader industrial landscape.
Fertiliser demand remains structurally inelastic; the pass-through subsidy mechanism effectively anchors this sector as the market’s demand floor.

Tracking the journey from 2024 Total to 2025 Total by sector contribution.

Incremental positive movement is almost entirely CGD-led, reflecting sustained demand creation from PNGRB bidding rounds and Minimum Work Program rollouts.
The decline in Industrial and Manufacturing reflects fuel-switching behaviour as delivered gas prices breached commercial viability thresholds.
The waterfall highlights a zero-sum demand environment—incremental growth in CGD is largely accommodated by volume withdrawal from Power and general industry.

Imported gas consumption trends. CGD Drives the growth as Power and Fertilizer sectors moderates.

CGD entities have become structural RLNG buyers, blending imported gas to compensate for constrained domestic APM allocations.
Fertiliser remains the dominant RLNG absorber, reflecting a system where domestic gas is preferentially absorbed by CGD, pushing urea production towards imported supply protected by subsidies.
The near absence of RLNG in Power confirms its economic non-viability without peaking tariffs or regulatory intervention.
Despite addition of new refineries to grid contraction in Refinery demand is explained by increased internal use of liquid fuels amid elevated spot LNG prices.

Which sectors are driving the incremental demand for imported gas?

The CGD uplift represents “inelastic network demand”, where distributors are compelled to procure LNG to maintain supply continuity despite high prices.

Consumption of domestically produced gas across key sectors.

Flat domestic volumes reflect resource realities—new deepwater production largely offsets decline in legacy nomination fields, limiting net growth.
The chart reinforces the priority-sector construct, with CGD and Fertiliser together commanding the bulk of domestic gas availability.
This leaves limited low-cost APM gas for sponge iron, industry, and power, constraining their utilisation.
A secondary trend is higher upstream self-consumption, reducing merchant gas availability in the open market.

Sectoral variance in domestic gas uptake between 2024 and 2025.

Domestic gas volumes are reallocated away from Power and Industry to sustain the expanding CGD consumer base.
The flattening CGD contribution signals that the sector is approaching its domestic allocation ceiling, implying future growth will be import-led.
Declines across non-priority sectors are compounded by natural reservoir pressure depletion, shrinking the distributable domestic pool.
The waterfall captures redistribution under constraint, not discretionary demand loss.

Proportional distribution of Domestic, RLNG, and Total Gas consumption in 2025.

Nearly half of India’s gas demand is effectively price-inelastic, anchored by fertiliser subsidies and regulated CGD consumption.
Fertiliser and CGD together dominate the demand mix, establishing themselves as the twin structural pillars of the gas economy.
Power’s reduced share confirms its role has shifted to intermittent, system-balancing use rather than sustained baseload demand.
Domestic vs RLNG pies reveal a clear bifurcation, with imports concentrated in a narrow set of sectors.

Comparison of monthly consumption trends for 2024 vs 2025. Select a sector to view specific data.

The Q2–Q3 dip confirms the monsoon effect, with lower cooling demand, higher hydro generation, and disrupted industrial activity.
2025 consumption curves display lower volatility, indicating demand rationalisation under sustained price pressure.
Short-lived spikes in Q1 align with heatwave-driven grid stress, where gas-based power operated as a peaking resource.
Industrial demand shows a lagged response to global price movements, reflecting contract structures and inventory cycles.