Indian domestic natural gas consumption has slowed as local production falls, imports remain expensive and the demand for gas-based electricity declines.
Gas consumption rose just 0.6% year-on-year in February, compared to a 9.1% increase in the fiscal year April/February, according to oil ministry data, reported the Economic Times.
Strong growth earlier this year was primarily driven by the dramatic rise in gas use by generators to meet peak electricity demand during the very hot summer last year, an industry executive said.
However, as temperatures cooled, gas demand from the power sector sharply declined, he added.
National gas consumption rose 16% year-on-year in May, expanded to 23% in June, and 24% in July last year during the heatwave.
The festive season also helped push gas demand up by 16% in October. But in other months, the demand growth was only 3-4%.
The power sector's share of national gas consumption was 19% in May, when generators consumed the highest volume in any month of the fiscal year.
The share fell to 9% in November, when power plants consumed the lowest volume in the year. Imports contributed significantly to the power sector's consumption.
India’s fertiliser sector is the largest user of gas. Since it is subsidised by the government, fertiliser makers can use more expensive imported LNG in large quantities, the media outlet explained.
Other industries reduce their gas consumption and switch to liquid fuels such as propane and fuel oil when international LNG prices are high.
