With a sustained GDP growth of around 8 percent in the last few years, India is emerging as a major economy in the world. But the increased economic activities have led to higher demand on energy resources. Along with China, India is driving the energy market of not only Asia, but the whole world.
According to Energy Information Administration (EIA) estimates, India was the fifth largest consumer of oil in the world during 2006. As demand for energy continues to outstrip indigenous production, India has become increasingly dependent on buying energy, either by imports or through investments in countries with rich fossil fuel sources, to meet consumption needs.
Natural gas has emerged as the most preferred fuel due to its inherent environmentally benign nature, greater efficiency and cost effectiveness. The demand of natural gas has sharply increased in the last two decades at the global level. In India too, the natural gas sector has gained importance, particularly over the last decade, and is being termed as the Fuel of the 21st Century.