LNG
A heat wave, policy measures and gas flexibility are driving a surge in gas-fired power in India as LNG imports are expected to rise sharply in the next two years, according to Reuters citing industry officials and experts.
- India’s gas-fired power generation doubled in April and May to 8.9bn kWh compared with the same period last year, Grid India data showed replacing coal-generation.
- The gas share nearly doubled to 3.1% in May as the coal share dipped to 74% from 75.2% in May 2023.
- The high cost of gas relative to coal has limited gas-fired plants to only about 2% India's power generation in recent years.
- Gas demand was also boosted by the forced operation of idle gas-fired power plants to avoid power cuts during the 43-day elections.
- Gas-fired power output is expected to grow by 10.5% in the fiscal year ending in March 2025, following 35% growth the prior year.
- LNG imports rose in May to the highest levels since October 2020 and LNG demand is set to increase by 19% in 2024 to more than 28m metric tons in 2025, according to ICIS.
186 words