Heavy monsoon, LNG price volatility dampen India's natural gas demand, Pg13.

Key Highlights:

• India's LNG imports decreased by 11.1% to 16.9 bcm in the first half of FY26 (April-September) compared to 19.0 bcm in the same period last year.
• The decline occurred despite a fall in domestic natural gas production from 18.2 bcm to 17.6 bcm during the same period.
• Heavy monsoon rainfall, 108% of the long period average, reduced power demand and the need for gas-based power generation.
• Volatility in international LNG prices led some industries to switch to alternative fuels like naphtha.

Detailed Insights:

• The decrease in LNG imports reduced India's reliance on imported gas to 49.3%, down from 51.5% the previous year.
• Gas-based power production fell by a quarter to 15.8 billion units, with the plant load factor contracting to 17.9% due to lower power demand during the monsoon.
• RLNG consumption in the fertilizer sector, the largest gas consumer, dropped by 8.5% to 8.2 bcm, while the refinery sector saw a 17.3% decline to 1.9 bcm.
• The city gas distribution sector experienced a 23.1% increase in RLNG use, reaching 2.9 bcm, as alternative fuels are not viable for this sector.
• Experts anticipate a reversal of the import decline as global LNG prices are expected to decrease with increased supply capacity starting in 2026.

Key Concepts Involved:

• LNG (Liquefied Natural Gas): Natural gas cooled to extremely low temperatures for easier storage and transport.
• RLNG (Regassified Liquefied Natural Gas): LNG that has been converted back into its gaseous state after import.
• Plant Load Factor: The ratio of average power generated by a plant to the maximum power it could generate in a period.