India to record its highest-ever gas consumption annually in FY24: CareEdge Ratings
gas production, India’s dependency on imported LNG or liquefied natural gas, which stood at 53% of total consumption in FY21, has gradually declined over the last three years and is expected to remain at around 45% by FY26, said CareEdge Ratings in a report on Tuesday.
The higher demand for natural gas in the country is also expected to be supported by sizeable growth in domestic gas production wherein nearly 30 MMSCMD (million metric standard cubic meters per day) of new domestic natural gas production has gradually come on stream over the last three years and another around 15 MMSCMD of new domestic natural gas production is expected to come on-stream during FY25.
“With greater thrust of the Government for transitioning towards cleaner fuel, there was a steady growth in natural gas consumption till FY20. However, due to the impact of the Covid-19 pandemic and sharp increase in imported LNG prices due to the geopolitical situation, there had been a decline in natural gas consumption during FY21 and FY23 respectively," said Hardik Shah, Director at CareEdge Ratings.
CareEdge Ratings expects India to record its highest-ever gas consumption annually in FY24. The note further states that natural gas consumption declined in FY23 whereby gas lost its cost competitiveness to the alternate fuels, owing to the sudden outbreak of war between Russia and Ukraine in February 2022 leading to a sharp increase in natural gas prices.
India aims to increase the share of natural gas in its primary energy mix from existing 6% to
