LNG Imports Rise 10.8% in October as Domestic Gas Output Drops 1.6%
OIL & GAS

LNG Imports Rise 10.8% in October as Domestic Gas Output Drops 1.6%

India’s natural gas landscape in October 2024 showed a blend of growth and challenges. Liquefied natural gas (LNG) imports experienced a significant increase of 10.8 per cent year-on-year, reaching 2941 million standard cubic meters (MMSCM), while domestic production saw a decline of 1.6 per cent, totaling 3111 MMSCM. According to the latest report from the Petroleum Planning & Analysis Cell (PPAC), the country’s growing dependence on imported LNG to meet rising energy demands was evident, as domestic production struggled to keep pace.

In October, the total natural gas available for sale was 5527 MMSCM, marking a 4.2 per cent increase from the same month last year. However, consumption decreased slightly to 6019 MMSCM, compared to September’s levels, reflecting uneven demand across sectors. Fertilizers were the largest consumer, accounting for 29 per cent, followed by city gas distribution (CGD) at 21 per cent, and power generation at 11 per cent. Refineries and petrochemicals together consumed 12 per cent of the available gas.

The report also pointed to a concerning trend of falling domestic production, which declined to 3111 MMSCM in October 2024 from 3161 MMSCM in October 2023. After accounting for technical losses, flaring, and internal consumption by gas-producing companies, only 2586 MMSCM was available for sale, making up 83.1 per cent of the gross production. In contrast, LNG imports surged to 2941 MMSCM from 2653 MMSCM in October 2023, becoming increasingly vital to sustain the country’s energy supply.

India’s reliance on LNG imports continues to rise, driven by higher demand from industrial sectors and city gas distribution networks, especially in urban areas where clean energy initiatives are gaining momentum.

In terms of sectoral consumption, the fertilizer sector remained the largest consumer of natural gas, using 1725 MMSCM in October 2024, despite a 9 per cent year-on-year decrease. The CGD sector saw a 7 per cent increase in gas consumption to 1261 MMSCM, fuelled by urban expansion and a push for greener fuel alternatives in both public and private transport. On the other hand, the power generation sector experienced a significant 23 per cent drop in gas usage, falling to 674 MMSCM, reflecting a shift toward alternative energy sources and rising concerns about the cost of gas-based power generation. In the industrial sector, refineries consumed 523 MMSCM of natural gas, marking a 5.9 per cent increase, while petrochemical consumption grew by 11 per cent to 209 MMSCM.

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India’s natural gas landscape in October 2024 showed a blend of growth and challenges. Liquefied natural gas (LNG) imports experienced a significant increase of 10.8 per cent year-on-year, reaching 2941 million standard cubic meters (MMSCM), while domestic production saw a decline of 1.6 per cent, totaling 3111 MMSCM. According to the latest report from the Petroleum Planning & Analysis Cell (PPAC), the country’s growing dependence on imported LNG to meet rising energy demands was evident, as domestic production struggled to keep pace. In October, the total natural gas available for sale was 5527 MMSCM, marking a 4.2 per cent increase from the same month last year. However, consumption decreased slightly to 6019 MMSCM, compared to September’s levels, reflecting uneven demand across sectors. Fertilizers were the largest consumer, accounting for 29 per cent, followed by city gas distribution (CGD) at 21 per cent, and power generation at 11 per cent. Refineries and petrochemicals together consumed 12 per cent of the available gas. The report also pointed to a concerning trend of falling domestic production, which declined to 3111 MMSCM in October 2024 from 3161 MMSCM in October 2023. After accounting for technical losses, flaring, and internal consumption by gas-producing companies, only 2586 MMSCM was available for sale, making up 83.1 per cent of the gross production. In contrast, LNG imports surged to 2941 MMSCM from 2653 MMSCM in October 2023, becoming increasingly vital to sustain the country’s energy supply. India’s reliance on LNG imports continues to rise, driven by higher demand from industrial sectors and city gas distribution networks, especially in urban areas where clean energy initiatives are gaining momentum. In terms of sectoral consumption, the fertilizer sector remained the largest consumer of natural gas, using 1725 MMSCM in October 2024, despite a 9 per cent year-on-year decrease. The CGD sector saw a 7 per cent increase in gas consumption to 1261 MMSCM, fuelled by urban expansion and a push for greener fuel alternatives in both public and private transport. On the other hand, the power generation sector experienced a significant 23 per cent drop in gas usage, falling to 674 MMSCM, reflecting a shift toward alternative energy sources and rising concerns about the cost of gas-based power generation. In the industrial sector, refineries consumed 523 MMSCM of natural gas, marking a 5.9 per cent increase, while petrochemical consumption grew by 11 per cent to 209 MMSCM.

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