India draws its natural gas from both offshore and onshore sources, yet local production covers only about half of the nation’s requirements. Offshore extraction occurs from beneath the seabed, while onshore drilling takes place on terrestrial fields.
The country ranks as the world’s fourth-largest importer of liquefied natural gas (LNG), with demand rising rapidly. This reliance has rarely appeared more vulnerable than at present.
Escalating conflict involving the US, Israel, and Iran has brought the Strait of Hormuz—a critical passage for nearly 20 percent of global LNG trade—close to a standstill. This narrow waterway now poses unforeseen supply risks for India. Nevertheless, the nation does generate a portion of its own natural gas and is not wholly reliant on foreign supplies.
In 2023, India’s domestic gas production totalled 36.4 billion cubic metres (bcm), satisfying roughly half of overall demand. The remaining half is met through LNG imports.
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Production comes from multiple sedimentary basins spread across the country’s land and coastal areas. The deepwater Krishna-Godavari (KG) basin off the eastern coast stands as the largest contributor. Three key fields there—R Cluster, Satellites Cluster, and MJ—accounted for nearly 25 percent of India’s total net production of around 36 bcm in 2024. Over their lifetimes, these fields are projected to yield a combined 85 bcm.
Onshore, the northeast region plays a vital part. Fields in the Assam and Tripura basins together have provided nearly 47 percent of India’s onshore output and about 13 percent of total national gas supply.
State-owned companies ONGC and Oil India lead operations in several areas, including the Mumbai offshore fields, Assam, Tripura, and Cambay basins. Some of these sites have been yielding gas since the 1960s.
Domestic production, however, faces clear limits. Projections indicate only modest expansion through 2030, with output expected to reach just under 38 bcm—roughly an 8 percent increase from 2023 levels.
This constrained growth means India will continue depending heavily on LNG imports to bridge the gap, even as geopolitical tensions around key transit routes like the Strait of Hormuz heighten uncertainties for energy security.