New Delhi: India’s natural gas demand is expected to rise by 6 per cent in 2024. Gas Market Report published by International Energy Agency (IEA) revealed this. As per the report, the rise in consumption in fertiliser units, power generation and industrial sectors is behind the surge in demand.
India’s primary gas supply rose by 5 per cent in 2023, with growth primarily driven by the petrochemical, power generation, refinery and industrial sectors. India’s natural gas demand had risen to 64 billion cubic meters in 2023.
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‘Natural gas demand in India is expected to increase by 6 per cent in 2024, mainly supported by higher gas use in industry (including in the fertiliser sector) and stronger gas burn in the power sector amid the development of its national pipeline grid and city gas infrastructure. We expect India to increase its LNG imports in 2024 by 7 per cent, fuelled by demand from the power and fertiliser sectors, as the country plans to stop importing urea by 2025,’ IEA said.
Liquefied natural gas (LNG) imports rose by 7 per cent on the year to 29 billion cubic meters last year, with import dependency at 44 per cent of the nation’s natural gas consumption. Domestic production was up 6 per cent on the year to 35 billion cubic meters on the back of a rise in output from Reliance Industries’ KG-D6 block.
Natural gas extracted from below surface and seabeds is used to make fertiliser, generate electricity, convert into CNG to run automobiles, piped to households for cooking purposes and used as fuel and feedstock in industries. India’s domestic production is insufficient to meet demand and so the fuel is imported as LNG in cryogenic ships.
Power companies imported 2.32 billion cubic meters of LNG in 2023, making up around 9 per cent of total imports and up by 76 per cent on the year.
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