By Admin 
Natural Gas Price Forecast: Consumption of natural gas is increasing rapidly in India. Be it the increasing demand for CNG and PNG or increased use of gas in industries, its direct impact is visible on the prices. Natural gas consumption in India is estimated to reach 103 billion cubic meters (BCM) annually by 2030, which is 60 percent more than the current level. Amidst all this, people are now curious to know where the prices of natural gas will reach in the next 5 years?
How much will the price of natural gas increase?
The price of natural gas in India is currently around Rs 280-290 per MMBtu. On MCX it is trading around Rs 281-289 per MMBtu. Due to strong demand and reduction in global supply, India may have to spend more on LNG imports in the future, hence the price is likely to reach Rs 340–420 per MMBtu by the year 2030. As the cooperation from the government is increasing, the infrastructure is also developing. Due to this, gas consumption is increasing further. As a result, the price is likely to be closer to Rs 350–440 per MMBtu by 2027.
What will be the price by 2030?
The increased capacity of LNG by the year 2028 will undoubtedly help in supply, but demand pressure will remain, hence the price is likely to remain in the range of Rs 360–460 per MMBtu. Long-term demand and dependence on imports may further increase prices, hence they may trade in the range of Rs 370–480 by 2029.
As already mentioned, gas consumption in India may increase by about 60 percent by 2030, which will support prices for a long time. During that time they will trade in the range of Rs 380-500.
What will be the effect?
It is obvious that if gas prices increase, transportation, electricity and daily essentials may become expensive. This impacts both the budget of middle class families and the operating expenses of small businesses. Apart from this, power plants and industries like fertilizer, steel and chemical are heavily dependent on natural gas. Increase in prices increases production costs, which can increase electricity prices and affect the profits of companies.
Overall, natural gas prices in India in the coming years will depend on many factors like global market, increasing domestic demand and LNG imports etc. Past trends show that gas prices do not remain stable, hence before deciding on any investment related to it, it is important to understand the market movements and avoid taking hasty decisions.
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