India to be second largest driver of gas demand in Asia, pins IEA

only 51% of the country’s necessities and domestic output increased 19.1% on year to 2,740 million standard cubic metre (mscm) in May.

Total consumption of 5,247 mscm of natural gas in May was 4.3% higher than the corresponding month of the prior year. The 2,587 mscm of liquefied natural gas (LNG) imported in the month was 9.2% more than the import volumes of May 2020. The cumulative LNG import of 5,242 mscm in April-May, 2021 was higher by 24.9% yearly, but the value of imports grew 67% year-on-year to $1.5 billion with rising prices.

“In 2021, India’s gas consumption is expected to increase by 4.5%, but the economic fallout from the ongoing second wave and high LNG prices present downside risks to our forecast”, IEA pointed out in its latest market report titled “Gas 2021 – Analysis and forecast to 2024”.

Demand for the natural gas in the domestic market is traditionally reliant on the fertiliser (28%), power (23%), CGD entities (16%), refineries (12%) and petrochemicals industries (8%). Almost two-thirds of India’s 2020-2024 demand expansion is seen to come chiefly from substitution of liquid fuels to gas, the IEA said. The government goals to have 10,000 CNG retail outlets in the next five years from the current status of around 2,500 CNG stations across the country.