Import dependency for natural gas consumption expected at around 45 per cent by FY26

Mumbai, Mar 19 (Mayank Nigam) CareEdge Ratings in its latest report has highlighted that with rise in domestic natural gas production, India’s dependency on imported LNG (liquefied natural gas), which stood at 53 per cent of total consumption in FY21, has gradually declined over last three years and is expected to remain at around 45 per cent by FY26.

The higher demand for natural gas in the country is also expected to be supported by sizeable growth in domestic gas production wherein nearly 30 MMSCMD of new domestic natural gas production has gradually come on-stream over last three years and another around 15 MMSCMD of new domestic natural gas production is expected to come on-stream during FY25. CareEdge Ratings expects India to record its highest-ever gas consumption annually in FY24, which was down in FY23, owing to sudden outbreak of war between Russia and Ukraine in February 2022, leading to a sharp increase in prices of natural gas, said a press release here on Tuesday.