Chart Of The Week: India’s Gas Demand Outpacing Production

Gas production in India has consistently been growing for the past three years. As per Energy Gully’s provisional estimates, domestic gas production in India expanded at a healthy rate of 5.1% in 2023, y-o-y. The incremental output is primarily coming from private players field such as Reliance-BP JV. However, output growth is still lagging behind consumption growth. As per Energy Gully’s provisional estimates, India’s gas consumption grew by 6.8% in 2023, y-o-y, supported by industrial and power sector. The gap between production and consumption continues to be filled through imports. LNG imports posted a growth of 8.8%, y-o-y, in 2023.

Expanding economy, rising LNG import capacity and domestic market reforms will keep demand growth healthy in the country. As per IEA, India’s gas consumption will grow at an annul rate of 8% over 2022-26. Meanwhile, production is expected to grow at an annual rate of 4%, over the same period, thus necessitating higher LNG imports.

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