SectorVector - The flow tapers

India’s natural gas consumption averaged ~190 mmscmd during April-October this fiscal, 4.6% down compared with ~200 mmscmd in the same period last fiscal. Lower power sector offtake amid seasonal swings in liquefied natural gas (LNG) prices and planned maintenance shutdowns at refining and fertiliser units curtailed demand.
 

Gas consumption saw a pronounced decline in summer as an early onset of southwest monsoon reduced demand for cooling. That compares with a rise to ~203 mmscmd in the summer of last fiscal amid policy-driven rise in dispatches of gas-based power plants.

At the same time, spot LNG prices averaged ~$13/MMBtu (up ~34% on-year), which pushed gas-based generation out of the merit order and limited incremental demand.