Page 5 - Policy Economic Report_Feb'25

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

The natural gas sector faced mixed trends, with gross production in January 2025 at 3,066 million standard
cubic meters (MMSCM), down 2.3% YoY. However, LNG imports increased by 25.1% YoY, reflecting a
growing reliance on imported gas. Sectoral consumption patterns indicate that fertilizers (30%), city gas
distribution (21%), and power generation (9%) remain the primary consumers of natural gas in India.

Key Policy Developments in India’s Energy Sector

The India Energy Week (IEW’25) emerged as a landmark event, highlighting India’s commitment to global
energy transition efforts. The event witnessed record participation from key global stakeholders, including
industry leaders, policymakers, and investors. A significant policy milestone was the launch of a Clean
Cooking Ministerial Conference, emphasizing India’s leadership in clean energy solutions. The conference
showcased India’s success in implementing the Pradhan Mantri Ujjwala Yojana (PMUY) and aimed to
foster global collaboration in providing clean, affordable, and accessible cooking energy.

Additionally, renewable energy investments in India continued to gain momentum. The power sector is
expected to require ?6.4 lakh crore in investments until FY35, focusing on solar and wind energy projects.
The push for electrified transport and energy storage solutions is evident, with estimates projecting EV
charging demand to reach 38 terawatt-hours (TWh) by 2032, necessitating the deployment of 47
gigawatts (GW) of battery storage.

Conclusion

India’s energy sector remains dynamic, with strong government initiatives supporting infrastructure
development, clean energy transition, and domestic energy security. The global oil and gas markets
continue to face volatility, but India’s strategic focus on diversification, energy efficiency, and renewable
expansion is expected to enhance long-term sustainability. Economic indicators remain positive, and with
continued policy support, India is well-positioned to navigate global energy challenges and drive future
growth in the sector.

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