Indian Economy News

India will record its highest-ever gas consumption annually in FY24: CareEdge Ratings.

  • IBEF
  • March 20, 2024

The rise in domestic natural gas production has led to a decline in India's reliance on imported LNG, which is expected to reduce from 53% of total consumption in FY21 to around 45% by FY26, according to a report by CareEdge Ratings. Over the past three years, nearly 30 MMSCMD of new domestic natural gas production has been introduced, with an additional 15 MMSCMD expected in FY25. Despite challenges like the Covid-19 pandemic and geopolitical tensions impacting imported LNG prices, India aims to elevate the share of natural gas in its energy mix to 15% by 2030, focusing on key sectors such as fertilizers, city gas distribution, power, refineries, and petrochemicals.

Regulatory adjustments, stable imported gas prices, sufficient LNG capacity, and expanding pipeline infrastructure are expected to support this transition, maintaining import dependency at around 45% by FY26. Improved domestic production, driven by recent discoveries and upcoming projects, mitigates the historical reliance on imports. India anticipates robust demand for natural gas across major consumption segments, with FY24 projected to witness record-high consumption following the challenges of the COVID-19 pandemic and geopolitical tensions.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.