By Editor Natural gas is a crucial component used for power generation, fertilisers, and industrial processes for the energy mix in India. The government policies are looking forward to natural gas as a cleaner fuel compared to coal. Data shows that India’s natural gas production has been continuously growing for the past couple of years.
The major share of natural gas production comes from offshore fields, but the onshore states also contribute significantly to fulfilling the domestic demand to reduce reliance on foreign companies. Onshore production is especially relevant for regional supply, infrastructure, and local value addition. As per 2023-24 data, the highest natural gas-producing states have helped in decreasing imports from other countries.
If you are also interested in knowing which states produce the most natural gas and how it impacts the nation, we are here with the data. Below are the top 5 highest natural gas-producing states in India:
1. Assam – 265.25 MMSCM per Month
Assam is leading in the natural gas production in India through its onshore gas fields. As per the recent reports and maps of onshore natural gas production, Assam contributed about one-third of the total national onshore output, which makes it a dominating state. Assam’s production is supported by the major fields, which are operated by Oil India Ltd. and ONGC. Most of these fields are in the Assam Shelf and areas around Dibrugarh, Tinsukia, and Nazia. This natural gas supply is critical for north-eastern India because it is used for the national gas grid. The key challenges for Assam’s natural gas production are maintaining infrastructure, managing environmental concerns, and ensuring stable wells.
2. Rajasthan – 191.86 MMSCM per Month
Rajasthan has always been among the top contributors in onshore natural gas production for the past couple of years. It has sizable output from the gas fields in the Cambay Basin and especially from the Barmer region. In one recent year, Rajasthan produced about 2,619 million standard cubic metres per day (MMSCMD) of onshore gas (state figure for a recent period), making it second among onshore producing states. This output helps supply industries, electricity generation, and pipelines in western India. Districts in Barmer and other parts of western Rajasthan are hotspots for exploration. Critical issues include the cost of extraction in desert terrain, water scarcity, regulatory approvals, and maintaining production in mature fields.
3. Tripura – 105.05 MMSCM per Month
Even though Tripura is a small north-eastern state, it is producing above its size in terms of natural gas production. The output in recent years has been around 1,521 MMSCMD from the ONGC’s assets. All this makes Tripura a top producer in terms of yield. Most natural gas production in this state goes to power plants, industrial usage, and is piped to regional demands. In 2025, Tripura’s natural gas industry will focus on sustaining the production numbers through the existing wells, while there are research teams working on discovering new fields. According to many sources and media houses, Tripura’s gas infrastructure is improving over the years.
4. Gujarat – 90.344 MMSCM per Month
Gujarat is also among the highest natural gas-producing states, especially because of its offshore fields and some onshore production. Some data shows Gujarat’s contribution to natural gas production as over 1,000 MMSCMD in recent periods for onshore gas. The state also benefits from its coastal proximity for offshore production, refining, and processing infrastructure, which helps bring gas to market efficiently. The major onshore and offshore gas fields tied to Gujarat are around the west coast. The major issue for Gujarat’s natural gas industry in current times is with offshore operations, gas pricing, and limits on transmission infrastructures.
5. Tamil Nadu – 77.435 MMSCM per Month
Tamil Nadu produces about 1,067 MMSCMD in natural gas from the onshore fields, which makes it the fifth largest natural gas producing state in India. The fields in the Cauvery Basin and other sedimentary basins dominate in the production numbers. Most natural gas produced here plays a key role in supporting city gas distribution, power plants, and industries in the southern region. The major challenges for Tamil Nadu include a decline in some fields and new exploration in the lesser-known blocks to sustain or improve production.
Bottom Line
These five states lead in natural gas production in India, with both their onshore and offshore fields. The government is trying new measures to improve production and reduce dependency upon foreign players.