IMARC Group Report Details India's Natural Gas Plant Setup Costs
IMARC Group has published a guide on the costs and processes for setting up natural gas plants in India. Demand for natural gas in India is growing significantly, with domestic production meeting only half of current consumption.
IMARC Group has released a new report detailing the landscape for establishing natural gas manufacturing plants in India, outlining project costs, process flows, and financial models.
India's gas consumption reached approximately 188 million standard cubic meters per day (mmscmd) in 2023-24. Domestic production met only about half of this demand, leading to reliance on imported Liquefied Natural Gas (LNG). The government aims to increase natural gas's share in the primary energy mix from 6% to 15% by 2030, projecting demand to reach 297 to 365 mmscmd by then.
The report identifies India's natural gas market as a strategically important investment area, given the supply-demand gap. Investment figures range from approximately INR 25–60 crore for compressed biogas plants to INR 800–2,000 crore for larger gas processing facilities. These figures exclude exploration and drilling costs.
The growth drivers include the city gas distribution network, fertilizer, refining, petrochemical, and power industries. The report covers essential aspects such as required licenses, land, infrastructure, and projected financial returns, estimating a net profit margin of 15–25% and a payback period of 4–7 years for well-managed plants.