India’s import bill for natural gas surged by 17% to $8.9 billion during the first seven months of the current fiscal compared with $7.6 billion in the same period a year ago due to rise in consumption particularly by the city gas distribution companies and the power sector, data from the Petroleum Planning and Analysis Cell showed. The import bill for the month of October stood at $1.2 billion against $1.1 billion in the corresponding period of last fiscal.
The country imported 22,085 million standard cubic meters of LNG (liquified natural gas) during April to October, up by 22.2% from the corresponding period of FY24, the data showed. The country’s dependence on imported gas increased to 51.3% during Apr-Oct from 46.7% in Apr-Oct of FY24.
Going ahead, as winter approaches with rising LNG prices and tight winter supply outlook, India may face challenges in securing competitively priced spot LNG cargoes, largely staying sidelined, according to global real-time data and analytics provider Kpler.
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However, in 2025, the country’s LNG imports are further expected to rise 7% on year to 27 million tonnes, according to Kpler. The growth will be supported by a gradual increase in offshore gas production and the expansion of pipeline infrastructure to the northern regions.
“The 5 million tonnes per annum Dhamra LNG terminal is projected to see increased imports with the full completion of the Pradhan Mantri Urja Ganga pipeline,” Kpler said. GAIL India is also set to operate its 5 mtpa Dabhol LNG terminal at full capacity in 2025, boosted by the new breakwater facility infrastructure, which is set to be completed before next monsoon season. “By second quarter of 2025, we should see the expansion of the largest LNG regasification terminal from 17.5 mtpa Dahej to 22 mtpa capacity,” as per Kpler.
The country’s consumption of natural gas increased by 11% to 43,033 mmscm in the April to October period compared to the same period last year.
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