Domestic natural gas consumption up 6% in November

New Delhi: Domestic natural gas consumption rose 6% in November over the same month last year, helped by increased supply from domestic fields, the oil ministry data showed.

Imports of liquefied natural gas (LNG) expanded 5% year-on-year in November while the output from domestic gas fields increased 7.6%. The overall domestic production was boosted by the 26% increase in output from fields operated by the private sector. ONGC’s natural gas output dropped 3.6% in November. ONGC produces about half of the country’s gas output.

For the April-November period, India’s gas consumption is up 8.5% year-on-year while LNG imports are up 12%. Domestic gas production is up 5.5%.

The fertilizer sector is the largest consumer of natural gas in the country with city gas distributors and power plants being the second and third-largest consumers respectively. Fertilizer makers are the biggest consumers of imported gas while city gas distributors are the largest users of domestic gas whose prices are subject to government-set ceilings.

India has imported 46% of the gas it consumed this financial year with Qatar being the largest sourcing destination. Gas is imported both under long-term and short-term contracts. With global LNG prices moderating from the record highs of 2022, India’s LNG imports have risen this year. Japan Korea Marker, the spot market benchmark for North Asia, is currently around $16 per mmbtu, much lower than $28 per mmbtu at the same time last year.

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