Domestic natural gas consumption experience a 7.1 per cent YoY increase in June

India imported 2,648 million metric standard cubic metres (MMSCM) of LNG in June, contributing to the total domestic gas consumption of 5,594 MMSCM.

Domestic natural gas consumption in India experienced a notable 7.1 per cent year-on-year increase in June, driven by an 11.3 per cent surge in imports, according to data from the Petroleum and Natural Gas Ministry. India imported 2,648 million metric standard cubic metres (MMSCM) of liquefied natural gas (LNG) in June, contributing to the total domestic gas consumption of 5,594 MMSCM. This rise in consumption was also supported by a 2.9 per cent expansion in domestic gas production, which reached 2,993 MMSCM.

For the April-June quarter, overall gas consumption increased by 3.8 per cent compared to the same period last year. Domestic production saw a 5.7 per cent rise, while imports increased by a modest 0.6 per cent. LNG prices in the spot market have surged by about 50 per cent over the past four months. The Japan-Korea Marker (JKM), the Asian spot benchmark for LNG, averaged $12.6 per million British thermal units (MMBtu) in June, slightly higher than the $12.2 recorded a year ago. The onset of the monsoon season has reduced electricity demand in the country, subsequently affecting LNG imports for power generation.

The consumption of refined products increased by 2.6 per cent in June, reaching 20 million metric tonnes (MMT). For the April-June period, the growth rate stood at 3.4 per cent, driven by an 11.4 per cent increase in aviation turbine fuel (ATF), a 7.1 per cent rise in petrol, a 1.6 per cent uptick in diesel, and a 5 per cent increase in liquefied petroleum gas (LPG) consumption.

Crude oil imports fell by 5.6 per cent year-on-year to 18.5 MMT in June. Despite the decline in volume, the import bill rose by 11 per cent to $11.1 billion in June due to higher prices. The Brent crude benchmark averaged $82.61 per barrel in June, up from $74.70 per barrel a year ago.