India saves USD 1 bn on LNG imports in April-May this year

With domestic natural gas production rising, India’s natural gas imports declined by 7.2 percent in May year-on-year at 2,650 MMSCM, data shows
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India saves USD 1 bn on LNG imports in April-May this yearPSU Watch
Summary
  • India imported 2,650 MMSCM LNG in May, which was 7.2% lower y-o-y

  • India imported 5,299 MMSCM LNG in April-May, which was 1.3% less y-o-y

  • India spent USD 2.2 billion on LNG import in April-May 2024-25 as opposed to USD 3.2 billion in April-May 2023-24

  • The gross production of natural gas for the month of May 2024 was 3,105 MMSCM which was higher by 6.7% y-o-y

  • India's natural gas production in April-May is 7.2% higher in comparison to the corresponding period of the last year

New Delhi: With domestic natural gas production rising, India’s natural gas imports have declined, leading to savings of USD 1 billion in April-May period, government data shows. In May, India’s gas imports declined by 7.2 percent year-on-year at 2,650 MMSCM. In May 2023, India imported 2,854 MMSCM of Liquefied Natural Gas (LNG). The trend was also visible in the April-May period of the current fiscal, when India imported 5,299 MMSCM LNG, which was 1.3 percent lower than 5,368 MMSCM imported during the corresponding period of the previous financial year.  

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In April-May period, India saved USD 1 billion on LNG imports on account of lesser volumes and prices cooling off. India spent USD 2.2 billion on LNG import in April-May 2024-25 as opposed to USD 3.2 billion in April-May 2023-24.

India’s natural gas production rises 6.7% in May y-o-y

The gross production of natural gas for the month of May 2024 was 3,105 MMSCM which was higher by 6.7 percent compared with the corresponding month of the previous year. The cumulative natural gas production of 6,063 MMSCM for the current financial year till May 2024 was higher by 7.2 percent compared with the corresponding period of the previous year.

India’s natural gas demand logs nominal growth

The pace of growth in domestic gas production is not matched by a rise in demand in the same measure. However, it does not impact sales as India is only able to meet around 55 percent of its demand through domestic production, while the rest is met through imports. But it certainly signifies that domestic gas demand is seeing nominal growth in India despite the government’s plans to increase the share of natural gas in the energy mix from 6 percent at present to 15 percent by 2030.

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The total natural gas consumption (including internal consumption) for the month of May was 5,708 MMSCM which was only 0.3 percent higher than the corresponding month of the previous year. The cumulative consumption of 11,265 MMSCM for the current financial year till May 2024 was higher by 3.6 percent compared with the corresponding period of the previous year.

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