CNBC’s Inside India Newsletter: India’s Deepening Ties with Natural Gas

October 31, 2024

As India’s population grows and its energy demands increase, the country is taking significant steps to secure its energy future, including a plan to quadruple natural gas usage by 2030. While natural gas has recently proven volatile for Europe, India sees it as crucial to balance energy security with its ambitious economic growth targets. Policies favoring natural gas-powered vehicles, plans to convert heavy-duty trucks to LNG, and expanding domestic cooking connections reflect India’s commitment to integrating natural gas into its energy mix.

Michael Landsberg, Chief Investment Officer of Landsberg Bennett Private Wealth Management, emphasized the importance of diversifying investment portfolios internationally, highlighting India’s appeal due to its economic growth rate, which is two to three times that of the U.S.

Key Takeaways:

  1. India’s Growing Energy Demand: With its rapidly expanding population and economy, India is increasing its natural gas usage to balance energy security and support its growth ambitions.
  2. Shift to Natural Gas in Transportation: Government policies have boosted compressed natural gas (CNG) vehicle sales by 33%, while LNG adoption in heavy-duty trucks is underway to reduce reliance on diesel.
  3. Natural Gas for Domestic Cooking: Piped gas connections have expanded significantly, with over 11.9 million households connected, offering a cleaner alternative to solid biomass and coal.
  4. Rising Import Reliance: India’s natural gas demand is expected to double by 2040, necessitating heavy reliance on imports due to insufficient domestic supply.
  5. Investment in Distribution Companies: Increased demand for natural gas is expected to benefit distribution companies, especially government-backed entities, as natural gas infrastructure expands.
  6. India as an Investment Opportunity: Michael Landsberg highlights India’s robust growth as a compelling reason to diversify portfolios beyond U.S. markets, underscoring its rapid expansion compared to the U.S.

India’s ambitious energy transformation strategy and rising natural gas demand provide promising investment opportunities.

Michael Landsberg’s perspective on portfolio diversification into high-growth regions like India aligns with the country’s strong growth trajectory, making it an appealing market for investors amid shifting global dynamics.

Learn more here: https://www.cnbc.com/2024/10/31/cnbcs-inside-india-newsletter-indias-deepening-ties-with-natural-gas.html

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