New Delhi, Apr 29 (KNN) India's natural gas consumption is expected to grow by 7 per cent year-on-year to reach 64.35 billion cubic meters (BCM) in 2024, according to the International Energy Agency (IEA).

This growth is fuelled by lower prices and increasing demand from the power and industrial sectors.

The IEA report states that India is likely to see an uptick in liquefied natural gas (LNG) imports due to a decline in spot LNG prices this year. 

However, this growth may be tempered by an increase in domestic gas production from ONGC's Krishna-Godavari field.

"Following Prime Minister Narendra Modi's announcement in January 2024 of a USD 67 billion investment plan for developing India's natural gas supply chain, momentum is set to continue over the coming years," the IEA said. "India's natural gas consumption in 2024 is projected to increase by over 7 per cent", reported BL.

During the October 2023 to February 2024 period, India's cumulative natural gas consumption rose by 17 percent year-on-year to 28.12 BCM. In the 2023 calendar year, consumption stood at 60.12 BCM.

The fertilizer industry, followed by the power sector, city gas distribution, and refineries, are the top natural gas consumers in the country.

The IEA noted that lower natural gas prices continued to stimulate gas demand in India, with gas use in industry rising by an impressive 15 percent year-on-year during the October 2023 to February 2024 period.

According to the Petroleum Planning & Analysis Cell (PPAC), India's primary natural gas supply, including domestic production and LNG imports, increased by 16 percent year-on-year between October 2023 and February 2024, reflecting growing demand across all sectors.

The lower spot price environment led to a notable increase in overall spot tenders for the purchase of LNG cargoes, with three to four times more tenders in winter 2023/24 than in the previous winter, and a higher success rate, particularly since October 2023.

As of March 2024, India had 1.26 crore domestic piped natural gas connections, 18,500 industrial consumers, 40,940 commercial consumers, and 6,456 compressed natural gas stations.

(KNN Bureau)