New Delhi: India‘s natural gas production recorded a slight decline in July 2024, with a 1.4% drop compared to the same period last year, according to the latest data released by the Petroleum Planning & Analysis Cell (PPAC). The gross production for the month stood at 3,079 million standard cubic meters (MMSCM).
While domestic production dipped, the country saw a significant increase in liquefied natural gas (LNG) imports, which rose by 18.6% year-on-year to 2,794 MMSCM in July 2024. The availability of natural gas for sale in July 2024 increased by 8.14% compared to the previous year, reaching 5,355 MMSCM.
Total consumption of natural gas during July 2024 was provisionally reported at 6,120 MMSCM. The major consumers were the fertilizer sector, accounting for 29% of the total consumption, followed by City Gas Distribution (CGD) at 21%, power at 12%, refineries at 9%, and petrochemicals at 5%.
The data also revealed that while domestic production for sale accounted for 83.2% of the gross production, the rest was either used internally by production companies or flared due to technical requirements.
Sectoral consumption showed that the fertilizer industry led the demand, with 1,801 MMSCM consumed in July 2024, reflecting an 8% month-on-month increase. The power sector‘s consumption remained almost flat at 724 MMSCM, while CGD consumption rose by 14% to 1,261 MMSCM.
The report highlights the growing reliance on LNG imports as domestic production struggles to keep pace with demand, raising concerns about the country’s energy security and the need for strategic planning in the energy sector.
