NEW DELHI: Gas consumption in India jumped 11% annually in 2024, leading to a spike in LNG (liquefied natural gas) imports for meeting rising demand across sectors — a development that is in line with govt’s low-carbon ambitions for the economy but also raises energy security vulnerability amid declining domestic production.
While industries and oil refineries were the key drivers, the International Energy Agency’s latest gas market report published on Tuesday said consumption in the residential, commercial as well as transport sectors also recorded double-digit growth, supported by lower relative prices of imported gas.
Industry posted a gas consumption growth of 22%, refining 26%, residential and commercial sector 14% and transport sector 12%, the report said. Heatwaves in the May-July period also jacked up gas consumption for power generation by 32% as electricity demand rose to record levels due to increased usage of cooling appliances.
“This demand growth led to a 21% year-on-year rise in LNG imports, supported by average spot LNG prices in India that were more than 12% lower than a year ago,” the IEA report said. “In 2024, the number of LNG cargoes tendered for delivery (both supplier offers and user invitations) in India increased by 70% year-on-year. The number of cargoes awarded increased by 85%, while the number of cargoes not awarded decreased by 20%,” the report said.
Govt wants to raise the share of natural gas in India’s energy basket to 15% by 2030 from a little less than 7% at present. The report forecast India’s gas demand to increase by 8% this year, assuming average weather conditions, driven by the country’s growing energy needs and rapid economic expansion. But declining domestic production poses a challenge as demand rises.
