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NEW DELHI: India’s gas consumption is estimated to have declined 6% in 2022 as record prices in the aftermath of the Russia-Ukraine conflict squeezed demand, the International Energy Agency (IEA) said on Monday.
Lower gas demand combined with a 3% rise in domestic gas production saw LNG (liquefied natural gas) imports drop 17%, marking the steepest fall on record and the first decline covering two consecutive years in India’s two-decade history as an LNG importer, IEA said in its latest gas market report.
Consumption in the petrochemicals sector saw the sharpest year-on-year fall at 32%, followed by the refining sector that saw a drop of 30% and power generation 24%.
The report said city gas (CNG and PNG) demand was broadly flat. Consumption in the fertiliser segment and other end-uses, including agriculture, upstream operations and other industries, saw modest expansion.
But the modest rise in consumption in these sectors was not enough to compensate for the steep declines in the more price-sensitive areas of the economy. According to the report, price-sensitive industries switching to cheaper fuels because of high prices was the main reason for reducing LNG imports.
Lower gas demand combined with a 3% rise in domestic gas production saw LNG (liquefied natural gas) imports drop 17%, marking the steepest fall on record and the first decline covering two consecutive years in India’s two-decade history as an LNG importer, IEA said in its latest gas market report.
Consumption in the petrochemicals sector saw the sharpest year-on-year fall at 32%, followed by the refining sector that saw a drop of 30% and power generation 24%.
The report said city gas (CNG and PNG) demand was broadly flat. Consumption in the fertiliser segment and other end-uses, including agriculture, upstream operations and other industries, saw modest expansion.
But the modest rise in consumption in these sectors was not enough to compensate for the steep declines in the more price-sensitive areas of the economy. According to the report, price-sensitive industries switching to cheaper fuels because of high prices was the main reason for reducing LNG imports.
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