In June, India’s Liquified Natural Gas (LNG) imports significantly increased due to a substantial rise in gas consumption, driven by higher power demand and better utilization of gas-based power capacities. The country consumed 5,594 million standard cubic meters (mmscm) of natural gas, up from 5,224 mmscm in the same period last year.

According to data from the Petroleum Planning and Analysis Cell, India’s Liquified Natural Gas (LNG) imports in June rose by 11% to 2,648 million standard cubic meters (mmscm). This increase is mainly attributed to a 7% rise in gas consumption, driven by higher power demand and enhanced utilization of gas-based power capacities.

The country consumed 5,594 mmscm of natural gas in June, up from 5,224 mmscm the previous year. In the first quarter of fiscal year 2024-25, natural gas consumption rose by 3.7% to 16,707 mmscm.

The import bill for natural gas in June increased by 10% to US$1.1 billion compared to June 2023. For the first quarter of the current fiscal year, LNG imports totaled US$3.4 billion, a 6.2% increase from the same period in FY24.

Power generation from gas-based plants in the quarter ended June soared by 62.5% year-on-year to 13.49 billion units, with the plant load factor (PLF) rising to 24.8% from 15.3% in Q1 FY24. In June, the PLF for these plants was 25.8%, up from 17% in June 2023.

The country’s power demand in June reached approximately 152.38 billion units, marking a 9% increase from the same month the previous year. The rise is attributed to widespread heatwaves. April-June power demand increased by 13% compared to the same period in 2023. The northern region saw a 22% surge in power demand in June due to a prolonged heatwave, leading to higher consumption of cooling appliances.

From April to May, the power sector’s share of natural gas consumption rose to 18%, up from 15% the previous year, following a directive from the power ministry for gas-based power stations to operate at full capacity until June 30 due to rising electricity demand.

Natural gas production in the first quarter of FY 2024-25 grew by 5.7% year-on-year to 9,056 mmscm, with June production up 3% to 2,993 mmscm. Analysts predict further increases in LNG consumption due to rising demand from the fertilizer and power industries

Source: India Business & Trade