New Delhi: India’s import of liquefied natural gas (LNG) rose in volume term by 17.5% on year. The total import of LNG in the financial year 2023-24 stood at 30,917 mmscm (million standard cubic meter). The increase in consumption is the reason for this surge. Even as the import volume reported such increase, the country’s gas import bill fell significantly by 22% to $13.3 billion in FY24 from $17.1 billion in FY23, as prices fell. Data released by the Petroleum Planning and Analysis Cell showed this.
The rise in consumption rose by 11.1% on year in FY24 to 66,634 mmscm. Increased use of gas by the fertilizer, power, and city gas distribution (CGD) sectors is the reason for this. While the fertilizer sector contributed to 32% of the total consumption, CGD entities accounted for 19% of the total natural gas consumption, followed by the power sector at 12%.
In the fertilizer and other industries, natural gas is used as a feedstock and is also used as a fuel for electricity generation and heating purposes in industrial and commercial units.
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Higher gas generation in the power sector was driven by higher peak thermal demand amid reduced hydro power generation. India generated 133,966.18 GWh of hydro power during April to March, a decline of 17% from 162,098.77 GWh in the same period a year ago, as per data from the Central Electricity Authority.
Moreover, the production of natural gas also grew by 5.7% on year to 36,438 mmscm in the financial year 2023-24. In March alone, the production stood at 3,138 mmscm, up 6.2% from the corresponding period a year ago.
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