India’s gas consumption rose by 11% in 2024, driven by industrial, refinery, residential, and transportation demand, alongside a surge in power generation due to extreme summer heat. LNG imports jumped 21% year-on-year as lower spot prices spurred increased shipments.
India’s gas consumption surged by 11% in 2024, driving a significant rise in LNG imports to meet escalating demand, according to the International Energy Agency’s (IEA) gas market report released Tuesday. Industrial sectors and oil refineries were key contributors to this growth, with households, businesses, and the transportation sector also experiencing double-digit increases due to relatively lower imported gas prices.
Industrial consumption of gas grew by 22%, while demand from refineries soared by 26%. Residential and commercial usage rose by 14%, and the transportation sector recorded a 12% increase. Additionally, extreme heat between May and July resulted in a 32% spike in gas usage for power generation as air conditioning demand surged.
The report highlighted, “This demand growth led to a 21% year-on-year rise in LNG imports, supported by average spot LNG prices in India that were more than 12% lower than a year ago.” It also noted, “In 2024, the number of LNG cargoes tendered for delivery (both supplier offers and user invitations) in India increased by 70% year-on-year. The number of cargoes awarded increased by 85%, while the number of cargoes not awarded decreased by 20%.”
India aims to elevate natural gas’s share in its energy mix to 15% by 2030, up from its current level of under 7%. The IEA projects an 8% rise in India’s gas demand this year, assuming normal weather conditions, driven by economic growth and expanding energy requirements. However, a decline in domestic gas production poses a challenge to meeting the increasing demand.
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