Increased consumption prompts higher natural gas imports: Ind-Ra

Mumbai, Aug 28: Domestic natural gas consumption has prompted higher LNG imports, ratings agency India Ratings and Research (Ind-Ra) said in a report.

“Ind-Ra believes that 11.8 per cent month-on-month (MoM) growth in liquified natural gas (LNG) import volume to 93 metric standard cubic metre per day (mmscmd) in June 2021 was led by 7.7 per cent MoM growth in domestic gas consumption to 166 mmscmd,” the report said.

“In June 2021, the city gas distribution segment volumes increased 61.2 per cent YoY and 10.3 per cent MoM to 28.9mmscmd.”

Accordingly, NG production has increased 19.5 per cent YoY.

“During the month, Oil India Limited and private or joint venture fields recorded an increase of 5 per cent YoY and 202 per cent YoY, respectively, while Oil and Natural Gas Corporation Limited recorded a decline of 7.4 per cent YoY in NG production volumes.”

“On a cumulative basis, NG production increased 20.4 per cent YoY during April-June 2021.”

Besides, India’s refining throughput increased 4.9 per cent YoY and 0.2 per cent MoM to 4.50 million barrels per day in June 2021.

“The refining throughput increased 17.7 per cent YoY to 4.61 million barrels per day during April-June 2021.”

“India’s petroleum product output, domestic consumption and exports increased 2.4 per cent YoY to 19.2mmt, 1 per cent YoY to 16.3mmt and 24.9 per cent YoY to 5.5mmt, respectively.”

In addition, the report said that domestic production marginally increased 0.3 per cent MoM.

On a cumulative basis, a fall of 5.1 per cent YoY in domestic crude production was registered during April-June 2021.

In June 2021, crude oil import volumes increased 16.3 per cent YoY while it declined 4.8 per cent MoM.

“Overall, crude oil imports declined 14.7 per cent YoY during April-June 2021. India’s crude import dependency stood at 86.3 per cent in June 2021, up from 83.6 per cent in June 2020.”