India’s expansion of natural gas is being held back by a lack of pipelines to deliver the fuel and high prices that make it uncompetitive against cheaper energy sources like coal and renewables. According to the authors of the newly released report, these infrastructure gaps and economic challenges have resulted in most of the country’s existing import facilities sitting idle for much of the year.
The report finds that “a lack of pipeline infrastructure has been a bottleneck for gas demand growth in India, along with costs and regulatory and policy factors.” Furthermore, the authors observe that “gas use is cost prohibitive in the power sector compared to coal and renewable power — which now accounts for 40% of installed capacity in India.”
Essentially, India lacks the physical network of pipes needed to move gas from ports to the industrial hubs and cities where it is consumed. Even if the pipes existed, the high price of imported gas makes it a poor financial choice for generating electricity when compared to the country’s massive domestic coal reserves and its rapidly growing solar and wind sectors. This price gap is so significant that most of India’s current gas import terminals are being used at less than half of their actual capacity.
The briefing ‘Southern Asia’s gas plans may be overblown’ was released by Global Energy Monitor in March 2026. Prepared by authors Robert Rozansky and Julie Joly, the report analyzes how geopolitical shocks and falling renewable costs are undermining ambitious gas infrastructure projects across India, Pakistan, and Bangladesh.
