RoydadNaft –  Natural gas consumption for September 2024 stood at 5,752 MMSCM, with the fertilizer sector accounting for the largest share at 29%, followed by city gas distribution (CGD) at 20%, and the power sector at 12%.

New Delhi: India’s natural gas production for September 2024 recorded a gross output of 2,977 MMSCM, showing a decline of 1.6% compared to the same month last year, according to the Petroleum Planning & Analysis Cell (PPAC). Despite this drop, LNG imports surged by 13.5%, reaching 2,932 MMSCM, highlighting the country’s increasing reliance on imports to meet its energy demand. The total availability of natural gas for sale was 5,411 MMSCM, marking a 5.8% increase year-on-year, demonstrating that higher imports are compensating for the reduced domestic output.

Natural gas consumption for September 2024 stood at 5,752 MMSCM, with the fertilizer sector accounting for the largest share at 29%, followed by city gas distribution (CGD) at 20%, and the power sector at 12%. The CGD sector saw a significant growth of 16% compared to the previous year, reflecting the sector’s expansion and the rising adoption of gas for urban utilities. In contrast, power sector consumption declined by 13%, with its share dropping, possibly due to shifts in energy preferences and the integration of renewables.

The refinery sector consumed 9% of the total natural gas, with a modest increase of 3.2% over the previous year. The petrochemical sector accounted for 4% of total consumption, showing a growth of 15%, driven by demand from related industries.

The report noted that net domestic production available for sale represented approximately 83.3% of the gross production after accounting for internal consumption and flaring by gas producers. The gap between domestic production and consumption continues to be filled by LNG imports, as the country aims to maintain sufficient gas availability for its energy and industrial needs.

India’s strategy to boost LNG import capacity reflects its focus on bridging the domestic production shortfall, but the increased reliance on imports raises concerns about price stability. To address this, the government is expected to further its efforts in expanding domestic exploration and production activities, while securing long-term LNG contracts to stabilize costs.

As part of its broader energy transition strategy, India aims to raise the share of natural gas in its energy mix from the current 6.7% to 15% by 2030. The dual approach of enhancing LNG infrastructure and increasing domestic output is seen as crucial to ensuring a stable and affordable energy supply for the country’s growth trajectory.