IEW 2026 INTERVIEW: India’s 2030 natural gas share to rise, 15% goal challenging: GEECL

India's share of natural gas in its primary energy mix is projected to increase by 2030; however, achieving the 15% target set for that year may be challenging due to the need for significant infrastructure development and regulatory reforms, according to Prashant Modi, vice chairman and managing director of Great Eastern Energy Corp. Ltd.

"Even if this figure falls short of the 2030 target, let us say to 10%, it will still be a big achievement," Modi told Platts, part of S&P Global Energy, ahead of the India Energy Week 2026 scheduled in Goa from Jan. 27 to Jan. 30.

According to Modi, natural gas currently accounts for about 6% of India's energy mix. He said increased gas consumption will be a "big enabler" in meeting the country's energy security needs and advancing its net-zero commitment.

Modi noted that the government is committed to increasing gas consumption, and current policies are moving in the right direction.

He said the 15% target is likely to be achieved, although it may be delayed by a couple of years.

Modi described the Petroleum and Natural Gas Rules 2025, which replaced earlier regulations, as a positive step for the development of India's hydrocarbon sector. He commended the government's vision and welcomed these recent developments.

He said all exploration and production activities now operate under a revenue-sharing mechanism, emphasizing that including natural gas under the goods and services tax is imperative, as companies currently face costs beyond what their contracts cover. Modi added that this change would eliminate the cascading tax effect for both producers and consumers.

Under the revenue-sharing mechanism, it is also essential to streamline the complex gas regulatory framework by simplifying the approval process.

"Any and all approvals should be only on a self-certification basis for any RSM contracts," Modi said. "Under the RSM regime, E&P activity is no different from running a manufacturing plant."

He said the key focus should be on improving the ease of doing business and simplifying processes after the license is awarded.

The environmental approval process timelines should align with those in the US, where approvals typically take around 30 to 75 days, rather than years, according to Modi.

"QHSE [Quality, Health, Safety, and Environment] laws are in place, and as long as everyone complies with them, there is no need for any government intervention," Modi said.

LNG impetus

LNG will continue to play a significant role in India's gas mix, and imports are expected to increase substantially in the coming years to boost the share of gas in the country's overall energy mix, Modi said.

Johan Utama, senior principal analyst for South and Southeast Asia at S&P Global Energy CERA, has said that "to achieve a 15% share of natural gas by 2030, India's overall gas demand must grow to around 225 Bcm, more than doubling our base case forecast."

"Absent any new major gas fields, we assume domestic gas production to remain at the level of our current base forecast to quantify the potential increase in LNG imports," Utama said.

In 2025, the US imposed a 50% tariff on goods imported from India, one of the highest tariffs Washington has imposed.

Modi said: "I believe in the long run, this will be detrimental to the US."

India continues to advance trade agreements with other countries, and the latest optimism centers on a potential EU-India trade pact, which was discussed at Davos and is expected to be signed by the end of January 2026, according to Modi.

"India has also found new markets for its exports and has forged various deals with other nations," Modi said. "It is commendable on the part of the government, and I fully support their stance in these trade matters."

Growth focus

GEECL is the first commercial producer of coalbed methane in India, extracting it from its Raniganj South block in West Bengal, which spans 210 sq km and holds 10.62 Tcf of original gas-in-place, according to the company.

"The Raniganj block will remain our focus," Modi said. The company is not seeking to diversify into the renewable energy segment, he noted.

"Our production enhancement program, which is underway, has already started yielding results," he said, adding that the program is expected to reach completion in the next five-six months.

GEECL plans to explore an additional 650 coalbed methane wells at Raniganj in the near future, Modi said. The company received the necessary environmental clearance for this activity a few months ago.

Modi said GEECL is considering bidding for the newly available hydrocarbon blocks.

He said GEECL is not seeking any strategic partners. The company has an established capital expenditure plan and intends to finance its growth through a combination of equity, debt and internal accruals.