India's Natural Gas Sector Sees Significant Transformation Over the Last Decade

India's Natural Gas Sector Sees Significant Shifts in Production and Producers

Key Highlights

• Offshore gas fields accounted for 71.9% of total production as of FY26 (till January), up from 71.7% in FY25
• Onshore production declined to 28%, down from a temporary increase in the middle of the decade
• Public sector companies, led by ONGC and Oil India, saw their share of production decline to 60.8% in FY25, from over 84% in FY20 and FY21
• Private and joint venture companies' share increased to 39.2% in FY25, driven by higher production from private-operated offshore blocks

Trends and Drivers

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India's natural gas sector has undergone significant changes over the past decade, driven by rising LNG imports, growing offshore production, and increasing private sector participation. The share of offshore gas fields in total production has strengthened in recent years, while onshore production has declined.

Geographical Concentration

Natural gas production remains highly concentrated in certain regions. Assam and Arunachal Pradesh together account for 35.6% of India's gas production in FY26 (till January), while smaller producers of coalbed methane from West Bengal and Jharkhand have gradually entered the market, although their share remains relatively small.