IEA Predicts Notable Surge in India’s Natural Gas Consumption

SEATTLE (Oil Monster): The International Energy Agency (IEA) Gas Market Report noted that India’s natural gas consumption is expected to witness notable surge in 2024. The consumption is predicted to record growth by 7% to 64.35 billion cubic metres (BCM) during the calendar year. The report identifies lower prices and increased demand from power and industrial sectors as the main drivers behind the projected growth in consumption.

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According to IEA, the dip in spot LNG prices will result in increased LNG imports in 2024. However, the boosted domestic natural gas production from ONGC’s KG basin could reduce these imports.

As per data, India’s natural gas consumption totalled 66.63 BCM in FY24. This compares with 59.97 BCM in FY23 and 64.16 BCM in FY22. The cumulative gas consumption recorded strong growth by 17% to 28.12 BMC during the period from October 2023 to February 2024. The natural gas consumption by industries posted 15% year-on-year growth during this period, due to lower prices. The consumption by oil refining sector recorded tremendous growth by 70%.

The country imported 30.92 BCM of LNG in FY24, in comparison with 26.30 BCM and 31.03 BCM in FY23 and FY22 respectively.