India’s Gas Demand In Jan Saw First YoY Increase In Eight Months

Natural gas consumption in India saw a first year-on-year increase in January since May to 5.18bcm, up by 6.4% on the year, as international gas prices have been declining according to the oil ministry.

• LNG imports rose 7.9% year on year to 2.2bcm last month and domestic natural gas production rose by 4% on the year.
• LNG imports for the April-January period are 14% lower than a year earlier. Domestic natural gas consumption is 6.1% lower for the same period.
• Before the pandemic, India imported about 50% of the gas it consumed. The share of the import dropped to 45% this fiscal year, ending 31 Mar, as international prices surged.
• As natural gas became expensive during the year, several commercial consumers switched to alternative fuels such as LPG and fuel oil, pushing up demand for both fuels.