India's Reliance on Imported Gas Remains High
Imported gas accounted for more than half of India gas demand in July as domestic production continued to remain stagnant.
Regasified LNG (RLNG) accounted for 54% of India’s total gas demand in July, which stood at 4.58bn m3, according to latest data published by Indian oil ministry's Petroleum Planning and Analysis Cell (PPAC). India’s gross production of natural gas during July dropped 5% year on year, PPAC said. Gross production in July was 2.71bn m3 compared with 2.85bn m3 in the year ago period.
Fertiliser, refinery and city gas distribution segments were among the top consumers of gas that month. India's fertiliser manufacturers used 0.72bn m3 of RLNG, refineries 0.52bn m3 and the city gas sector used 0.35bn m3 of LNG.
India’s LNG imports saw year on year increase for the fifth straight month in July. India imported 2.47bn m³ of pipeline gas in the form of LNG (about 1.85mn metric tons), up almost 29% compared with the same month of previous year.
India’s LNG imports may get a further boost thanks to the government’s decision to ban the import of petroleum coke (petcoke) as fuel. The ban was announced mid-August.