Gas News: Recently, a treasure of gas was found in Andaman Islands of India. Government company Oil India Limited had said that a large reserve of natural gas was found in the Andaman sea area. Due to which a lot of happiness was seen among the common people also. This was a news of relief amid the increasing gas shortage in the country. But do you know how important this discovery is for India and how the general public is going to benefit from it? Let us tell.

Why is this discovery important?
Finding natural gas in Andaman Basin is very beneficial for greater India. Although it will take some time to prove this, still this discovery is considered very important. There are three reasons behind this, let us explain:

• Finding of gas here shows that there is a process of formation and accumulation of oil and gas in the Andaman Basin. This means that there is a possibility of finding large energy reserves in this area.
• This discovery has increased the confidence of scientists and companies that further exploration in the Andaman region can be beneficial.
• After this discovery, the confidence of the world’s big oil and gas companies to invest in India will increase, because they will see new opportunities here.

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What does the Petroleum Ministry say
Talking about this with The Print, an official of the Petroleum Ministry said, ‘This discovery proves that there is geological possibility of finding good reserves of oil and gas in the Andaman Basin. Also, the hope of finding such resources in other deep and ultra-deep sea areas of India has also strengthened.

Meaning of getting gas in Andaman
Finding gas in the Andaman Basin is an important discovery, but it can only be called the beginning. Because it is too early to decide whether gas will be produced there on a large scale or not and whether it will be economically feasible to sell it. This is also because it is not yet known what the quality of the gas is, where it came from, how much energy it contains etc.

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However, when this gas reserve was found, Oil India Limited had said that they were collecting more samples of the gas and through this the quality, energy, where it came from etc. would be ascertained. According to the company’s initial investigation, this discovery is a strong indication that sources of oil and gas may exist in this area or there is a possibility of their accumulation. This will help in making future search plans.

Let us tell you that Andaman had discovered the reserves of this gas on June 5. It was told by the oil company that natural gas has been found in a well in Vijaypuram-3 near the coast of Andaman. This is the company’s second important hydrocarbon (oil-gas) discovery in this area. According to the company, the Vijayapuram-3 well is located about 15 kilometers away from the eastern coast of the Andaman Islands.

India’s Crude oil Production Falls: The continuous decline in domestic production of crude oil and natural gas in India has now become a big concern. Crude oil production has declined for the 11th consecutive year in 2025-26, while gas production has also declined for the second year. If we talk about the reason for this, it is the depletion of old oil fields and non-discovery of new large reserves. Due to this, India’s dependence on imports has increased to 89 percent in crude oil and 51 percent in gas. Meanwhile, incidents like Middle East tension have made the situation more difficult, due to which oil has become expensive and the shortage is also clearly visible.

Crude oil decreased by 22 percent

Over the past few years, the government has implemented several reforms aimed at promoting oil exploration activities, such as creating data repositories and simplifying regulations, but large foreign companies are still showing little interest. Production has continuously decreased in the last 10 years. Crude oil has decreased by 22 percent.

What are the main reasons for decline in production?

depletion of old oil fields

With time the old reserves are becoming empty, due to which the production is naturally decreasing.

Lack of new major discoveries

No major oil or gas reserves have been found in the last decade, due to which production could not increase.

delay in commercialization

The resources that have been identified have not been developed rapidly.

production data

crude oil
Production will fall by 2.5 percent to 28 million metric tons in 2025–26 and a total decline of 22 percent has been observed since 2014–15.

natural gas
3.7 percent decline to 34,776 mmscm in 2025–26
Nearly 40 percent decline from 2011–12 to 2020–21
Some improvement in 2021–22, but production stable for now

India should become self-reliant in energy sector

From all this it can be understood that now there is a strong need for India to rapidly increase exploration, development and investment to become self-reliant in the energy sector, because increasing dependence on imports can become a bigger challenge in the future.

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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Pakistan’s friend Turkey has announced the new discovery of 92.4 billion cubic meters of natural gas. According to the current market rates, its value has been estimated at around 37 billion US dollars i.e. around Rs 3.08 lakh crore. Energy and Natural Resources Minister Alparslan Bayraktar told the Parliament’s Energy Committee that this discovery is the biggest step towards Turkey’s energy self-sufficiency. Out of this, 75 billion cubic meters of gas was obtained from the Goktepe-3 well in May 2025.

Minister Bayraktar informed that the government aims to complete a total of 300 drilling operations by 2026, of which 282 will be onshore and 18 will be offshore. Turkey is currently producing 1.8 lakh barrels of oil per day, which is enough to fuel approximately 7 million vehicles. He said that oil production in the Mount Gabar field has been increased to 81,000 barrels per day from the earlier 57,000 barrels. Due to this, the country’s trade deficit has reduced by about 2 billion dollars every year.

20 million cubic meter production by 2026

The Turkish government also said that gas production of 20 million cubic meters / day will be started by 2026 through the new floating platform Osman Gazi being established in the Sakarya Gas Field in the Black Sea. In the third phase (by 2028), this production is expected to increase to 45 million cubic meters/day.

Self-reliance in energy sector through modern drilling technology

Over the past decade, Turkey has built the world’s fourth largest oil and gas exploration fleet. This includes 6 drilling ships and 2 seismic survey ships. With the help of these modern ships, Turkey is now able to dig and produce in its own sea areas, thereby reducing its dependence on foreign companies.

New gas discovery in Egypt, increased energy activity in Arab region

Along with Turkey, Egypt has also recently announced the discovery of new natural gas. According to the Egyptian Ministry of Petroleum, Badr El Din Company has discovered a well in the Badr-15 field of the Western Desert, which has the capacity to produce 16 million cubic feet of gas and 750 barrels of condensate per day. This is likely to increase Egypt’s national gas reserves by approximately 15 billion cubic feet.

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India core infrastructure sector: India’s infrastructure sector is moving fast. In June 2025, the growth rate of eight core infrastructure sectors of the country reached a three -month high level 1.7 percent. According to the government data released on Monday, it is higher than the growth rate of 1.2 percent recorded in May 2025, but is less than the growth of 5 percent recorded in June 2024.

These five sectors- coal, crude oil, natural gas, fertilizer and electricity, which were recorded output negative in June. However, positive growth was recorded in the production of refinery products (3.4 percent), steel (9.3 percent) and cement (9.2 percent).

There was so much reduction in production

In the first (April-June) quarter of the financial year 2026, eight core sectors have gained 1.3 percent growth. Whereas in the same period last year, it was 6.2 percent. That is, growth has decreased compared to the last one year. Coal production has declined by 6.8 percent in June, while crude oil production has declined by 1.2 percent. The production of natural gas and fertilizer has declined by 2.8 percent and 1.2 percent respectively.

Production of five out of eight sector is reduced

According to the report of News18, ICRA Limited Chief Economist Aditi Nair said, even though the core production increased from 1.2 percent of May 2025 to 1.7 percent, it certainly remained slow and a decrease in production of five out of eight sectors. He further said, where the output of coal remained under pressure due to the elevated base, while the excess rainfall in the beginning of June 2025 affected the production of electricity.

These sectors performed well

He further said, encouraging the production of cement and steel sector gained 9.2-9.3 percent growth in June 2025. The growth of these sectors was good in the first quarter of FY 2026, which means that strong GVA growth will also be achieved in the construction sector. Economists estimate that this slow performance of infrastructure will affect the overall GDP growth in the first quarter of FY 26.

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Oil reserve in India: Amidst Israel and Iran tension, the most fear is about crude oil prices at this time. Market experts believe that if the situation in West Asia is not under control, then the price of crude oil can also cross $ 150. Meanwhile, the news of India has a big oil reserves. However, it is still being excavated.

India currently imports about 85 percent of its needs from other countries. It includes countries from Russia to Gulf. After the US and Russia, India ranks at number three in the world in terms of oil imports.

Union minister’s big claim

Meanwhile, Union Petroleum and Natural Gas Minister Hardeep Singh Puri has made a big claim regarding the reserve of crude oil. If this claim is proved correct, then the dependence of oil on other countries of the world can be eliminated to a large extent. Hardeep Singh Puri, while talking exclusively with the Indian Express, said that India is on the verge of searching a big crude oil bhandal in Andaman Sagar.

He has compared this reserve in Andaman to the huge oil discovery made by Hays Corporation and CNOC in Gayana. Significantly, Gayana is currently at the 17th position in terms of the world’s crude oil reserves, where there is an estimated reserves of about 11.6 billion barrels and gas.

Economy will be 20 trillion

Puri says that if a discovery like Gayana is in India, the country’s economy can increase from $ 3.7 trillion to $ 2 trillion. Oil Bhandal’s discovery in Andaman for the Indian oil industry can prove to be a trump card. This will not only make India energy producing countries with energy imports, but India can also get a new identity on the global energy map.

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