India’s import dependency and reliance on imported liquified natural gas (LNG) has reached close to 60 per cent in FY2020. Power, fertilizer and city gas distribution (CGD) sector comprises nearly 70 per cent of the natural gas consumption in India. Meanwhile, the gas consumption in the CGD sector has almost doubled and grown at compound annual growth rate of 8.35 per cent in the last eight years. However, oversupply of LNG led to drastic drop in spot prices over the past two years and reached record low levels in early 2020. Nevertheless, with more than 400 districts authorised, the demand is bound to grow in the near future. Further, more than 120 districts have been identified for authorisation under the 11th bidding round which is expected to enable growth of the sector.
In the 16th edition City Gas Distribution in India virtual conference organised by India Infrastructure Publishing, Ankit Gupta, Managing Consultant, Oil and Gas, ICF made a presentation on the domestic gas and LNG supply in India.