New Delhi, Apr 22 (KNN) India's import of liquefied natural gas (LNG) surged by 17.5 per cent in the financial year 2023-24 to reach 30,917 million standard cubic meters (mmscm), driven by increased consumption across sectors such as fertilisers, power, and city gas distribution, according to data from the Petroleum Planning and Analysis Cell (PPAC).

The country's natural gas consumption rose by 11.1 per cent year-on-year to 66,634 mmscm during the same period, with the fertiliser sector accounting for 32 per cent of the total consumption, followed by city gas distribution entities at 19 per cent and the power sector at 12 per cent.

Despite the rise in import volume, India's gas import bill fell by 22 per cent to USD 13.3 billion in the financial year 2023-24, compared to USD 17.1 billion in the previous year, due to a decline in prices.

"Higher gas generation in the power sector was driven by higher peak thermal demand amid reduced hydro power generation," the PPAC data showed. India's hydro power generation declined by 17 per cent during the April to March period compared to the same period a year ago.

Domestic natural gas production also grew by 5.7 per cent year-on-year to 36,438 mmscm in the financial year 2023-24, with production in March alone standing at 3,138 mmscm, up 6.2 per cent from the corresponding period a year ago.

Analysts expect India's consumption of LNG to rise further in the coming months, backed by growing demand from the fertiliser and power industries, and lower spot LNG prices.

"In Summer 2024, imports are expected to increase by a further 3 mmscm per day compared with 2023, driven by sustained demand in the power sector and continued growth in the industrial and fertiliser sectors," said S&P Global in an earlier report.

(KNN Bureau)