India’s rising natural gas production enhances energy security

India’s natural gas sector sees a 7.8% rise in domestic production and a 5.4% increase in LNG imports, signaling growth in energy infrastructure. Despite higher domestic output, imported LNG remains crucial to meet rising demand. Natural gas plays a vital role in sectors like fertilizer production and power generation, supporting India’s transition to sustainable energy sources.

oil and gas chemical industry

India’s natural gas production increased in April 2024, reaching 2,958 million standard cubic meters (MMSCM), a 7.8% growth compared to 2023, as reported by the Petroleum Planning & Analysis Cell (PPAC) under the Ministry of Petroleum & Natural Gas. This growth reflects the nation’s continuous efforts to enhance domestic production capacities in the energy sector.

Total imports of liquified natural gas (LNG) in April 2024 amounted to 2,650 MMSCM, a 5.4% increase from April 2023. These figures highlight the importance of imported LNG to meet the rapidly increasing demand, despite the boost in domestic production.

Available natural gas grew by 7.1% year-over-year, reaching 5,087 MMSCM for April 2024. This enhanced availability is crucial as India seeks more energy-intensive industrial activities in various sectors.

“The integration of increased domestic production with strategic imports ensures that India is well-positioned to meet its industrial and commercial energy requirements,” said a senior official from PPAC. “These efforts align with the government’s objective to increase the share of natural gas in India’s energy mix, contributing to more sustainable economic growth.”

The fertilizer industry remained the largest consumer of natural gas in April 2024, utilizing about 28% of the total gas available. This sector relies heavily on natural gas for producing urea and other fertilizers essential for India’s agricultural sector.

City Gas Distribution (CAD) accounted for 20% of consumption, reflecting the government’s push for using natural gas as a cleaner cooking and vehicular fuel. The power sector consumed around 16% of the total, using natural gas to produce electricity with relatively lower greenhouse gas emissions compared to coal and oil.

Other major consumers of natural gas include refineries and petrochemicals, using 11% and 2% respectively. They use natural gas to produce various products, from gasoline and diesel to plastics and synthetic fibers.

The report also emphasized the strong processes involved in data collection and transfer, ensuring accuracy and transparency. “The meticulous approach to data handling reflects our commitment to providing reliable and timely information to all stakeholders,” the official added.

The government is implementing various initiatives to improve domestic natural gas production through continuous exploration and enhanced techniques in existing fields. Programs like the Hydrocarbon Exploration and Licensing Policy (HELP), which covers both conventional and non-conventional hydrocarbon resources, the New Domestic Natural Gas Pricing Guidelines, aligning national prices with the international market, and the National Data Repository (NDR), which organizes and regulates data of Indian sedimentary basins, aim to reduce India’s dependency on imports and stabilize supply for domestic market growth.

As India moves towards a more diverse and sustainable energy mix, the importance of natural gas will grow, supporting the nation’s economic goals along with its environmental responsibilities on the global stage.

Leave a comment

Subscribe To Newsletter

Stay ahead in the dynamic world of trade and commerce with India Business & Trade's weekly newsletter.