India's Gas Consumption Rises 11% In 2024, Boosting LNG Imports By 21%
Date
1/22/2025 4:41:35 AM
(MENAFN- KNN India)
New Delhi, Jan 22 (KNN) India experienced a significant 11 percent year-over-year increase in gas consumption during 2024, prompting a substantial rise in liquefied Natural gas imports to meet growing demand across various sectors.
This development aligns with the government's low-carbon economic objectives but simultaneously raises concerns about energy security as domestic production continues to decline.
According to the International Energy Agency's latest gas market report released Tuesday, the growth in consumption was widespread across sectors, with industries and oil refineries leading the surge. The industrial sector recorded a 22 percent increase in gas consumption, while refineries saw a 26 percent jump.
The residential and commercial sectors grew by 14 percent, and the transport sector expanded by 12 percent. A notable spike in power generation consumption, up 32 percent, occurred during the May-July period as heat waves drove electricity demand to record levels through increased cooling appliance usage.
The surge in demand triggered a 21 percent increase in LNG imports compared to the previous year, facilitated by spot LNG prices that were more than 12 percent lower than the previous year.
The market showed increased activity in 2024, with the number of LNG cargoes tendered for delivery rising by 70 percent year-over-year. Successfully awarded cargoes increased by 85 percent, while unawarded cargoes decreased by 20 percent.
The Indian government has set an ambitious target to expand natural gas's share in the country's energy mix to 15 percent by 2030, up from the current level of just under 7 percent.
Looking ahead, the IEA projects India's gas demand to grow by 8 percent in the coming year, assuming average weather conditions, driven by the nation's expanding energy requirements and rapid economic growth.
However, the declining domestic production poses a significant challenge in meeting this rising demand.
(KNN Bureau)
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