According to the government data, the amount of gas used by power plants in India has been the highest in the June 2020 quarter if we compare it with the data of the last three and a half years. The increase in usage of gas as an alternative to the existing primary source of coal is being attributed to cheap imports of Liquefied Natural Gas (LNG) by power plants along the west coast. This is expected to exacerbate the coal market scenario in India which is already spelling doom. This can also be viewed as a shift towards natural gas power plants.
The silver lining to this development is that it is going to create opportunities for LNG sellers for quite some time to come, at least till September, if power producers are to be believed. This has come as a relief for the LNG sellers as the demand for LNG has slumped across the globe amid the Covid-19 pandemic. The amount of imported gas consumption by power plants in India has increased by 2.4 percent.