The oil and gas sector continues to serve as the backbone of the country’s energy landscape, powering growth and ensuring resilience amid shifting global dynamics. In recent years, the industry has undergone a significant transformation, driven by regulatory reforms, increasing collaboration with global players and the adoption of cutting-edge technologies. Aligned with India’s broader climate and decarbonisation goals, the oil and gas industry is also spearheading clean energy initiatives to enhance efficiency and curb emissions.
Pipeline growth and LNG reforms take centre stage
India’s natural gas pipeline network is undergoing a phase of accelerated development, with a strong focus on expanding pipeline connectivity and improving liquefied natural gas (LNG) terminal utilisation. The national gas grid is poised for significant expansion, with a total announced network length of 34,233 km. Of this, around 25,429 km is currently operational and 10,459 km is under construction. The expansion is aimed at enhancing last-mile connectivity, improving gas accessibility across regions and supporting the government’s ambition to increase the share of natural gas in the energy mix to 15 per cent.
The pipeline expansion has prioritised last-mile connectivity to support city gas distribution (CGD) networks that deliver piped natural gas (PNG) directly to households and businesses. For example, in Motihari, Bihar, Bharat Petroleum Corporation Limited (BPCL) is implementing a Rs 20 billion CGD project to connect 50,000 households within a year, offering safer and more efficient energy access. Similarly, Guwahati, Assam, recently launched its first household piped gas supply, marking a tangible step in urban energy modernisation. These efforts highlight how the expanding grid is improving energy inclusivity.
Complementing the pipeline network is the country’s LNG infrastructure. Presently, India has eight operational LNG terminals with a cumulative regasification capacity of around 52.7 million metric tonnes per annum (mmtpa). These terminals are strategically located at Dahej, Hazira, Kochi, Dabhol, Ennore, Mundra, Dhamra and Chhara, serving as key entry points for imported gas.
To address issues of underutilisation and ensure more efficient use of existing assets, the Petroleum and Natural Gas Regulatory Board (PNGRB) recently introduced the LNG Terminal Regulations, 2025. This marks a major step towards improving India’s gas infrastructure efficiency and transparency. Meanwhile, India is considering abolishing import taxes on US LNG to enhance its competitiveness and deepen bilateral energy ties. It is also building its long-term LNG portfolio. Notably, TotalEnergies has signed a 10-year agreement to supply 400,000 mt annually to Gujarat State Petroleum Corporation Limited starting 2026. India, currently the world’s fourth largest LNG buyer, will need to double annual imports by the end of the decade to meet growing demand due to rapid urbanisation and industrialisation.
Spearheading digital transformation
India is rapidly advancing the use of the industrial internet of things (IoT) across the value chain, integrating real-time sensor data, predictive diagnostics and proactive leak detection, including pipeline monitoring through remote sensors and drones.
The Numaligarh refinery, in partnership with Bharat Sanchar Nigam Limited, is rolling out India’s first 5G captive non-public network within a refinery. This ultra-secure, high speed private network will enable the adoption of IoT, augmented reality, virtual reality training, real-time monitoring and digital twins, paving the way for advanced digital transformation across core industries.
Cairn Oil & Gas is also ramping up the deployment of advanced technologies and enhanced oil recovery techniques to promote domestic crude production. The company is preparing to monetise its shale blocks in Rajasthan to deploy a high-performance rig equipped with advanced automation and real-time monitoring. It is also deploying drone-based surveillance, digital twins and 4D seismic mapping to rejuvenate mature fields and tap unexplored reserves.
Meanwhile, India is looking to develop a comprehensive deepwater exploration and production (E&P) technology ecosystem, in collaboration with Norway, as it prepares to explore over 250,000 square km of offshore territory under the Open Acreage Licensing Policy Round 10, one of the largest offshore bidding rounds in the world. Deepwater E&P technologies involve advanced methods, tools and systems used to locate, drill, extract and process oil and natural gas from reservoirs located deep beneath the ocean floor, typically at depths of more than 500 metres. The Indian government aims to leverage these collaborations to fast-track its offshore production capabilities, particularly in areas such as the KG basin, where deepwater blocks such as KG-DWN 98/2 are producing oil.
Gas companies are deploying supervisory control and data acquisition (SCADA) systems across extensive pipeline networks to monitor and control operations remotely. Efforts are also under way to integrate geographic information system (GIS) with SCADA platforms, enabling geospatial visualisation, faster diagnostics and improved asset management.
In parallel, smart gas meters are gaining traction in the domestic and commercial segments. These meters offer real-time consumption data, accurate billing and enable consumers to better manage their energy usage, while also aiding utilities in reducing losses and enhancing service delivery. According to the ICF, based on typical market segmentation, smart gas meters are estimated to grow from $26 million in 2024 to nearly $91 million by 2033. This growth will be driven by CGD network expansion, digitalisation, government support and push towards prepaid and advanced metering infrastructure.
Strategic offshore collaborations
As a major energy consumer, India is actively seeking strategic offshore collaborations to secure energy resources, acquire advanced technologies and enhance offshore E&P capabilities. The country’s first offshore oil and gas decommissioning project has been successfully completed by the Panna-Mukta and Tapti joint venture comprising Shell (30 per cent), Reliance Industries Limited (30 per cent) and the Oil and Natural Gas Corporation (ONGC) (40 per cent, operator). The project involved the safe removal of the mid- and south Tapti fields, including five platforms and pipelines, as well as the plugging of 38 wells. The project has set new benchmarks for safety, environmental standards and regulatory compliance. The initiative also strengthened local supply chains and contractor capabilities, supporting the “Make and Break in India” vision and marking a significant milestone in India’s offshore energy sector.
ONGC Videsh Limited and Petrobras have entered into an MoU to collaborate on upstream oil and gas ventures across Brazil, India and other countries. The agreement also includes cooperation in areas such as trading, digital innovation and low-carbon solutions. Meanwhile, Oil India Limited has signed an MoU with Petrobras focused on hydrocarbon exploration in India’s deepwater and ultra-deepwater offshore regions, in line with the objectives of the government’s Hydrocarbon Exploration and Licensing Policy.
Progressing towards cleaner fuels
India’s transition towards cleaner fuels has gained significant momentum in recent years, driven by the twin goals of reducing crude oil imports and cutting carbon emissions. A major initiative in this direction is the rapid expansion of the CGD network. The PNGRB has authorised 307 geographical areas, covering almost 100 per cent of the country’s total geographical area across 733 districts. This expansion is enabling wider access to PNG for households and compressed natural gas (CNG) for transport, offering a cleaner alternative to liquefied petroleum gas and diesel. Building on the momentum, the PNGRB has set an ambitious target to establish 18,336 CNG stations and 126.3 million PNG domestic connections by 2032.
The government is also aggressively promoting compressed biogas under the Sustainable Alternative Towards Affordable Transportation scheme. India has made significant progress in its ethanol blending initiative, achieving the 20 per cent blending target (E20) ahead of schedule. Originally set for 2030 and later advanced to 2025, the goal has already been met during the current ethanol supply year. This achievement not only supports cleaner combustion but also creates a market for surplus sugar and grain, strengthening the rural economy.
Sidra Siddiquie
