Page 154 - CW E-Magazine (22-4-2025)

Hydrocarbons

CONSUMPTION TRENDS

Natural gas demand to rise 8% annually for next

5 years: PNRGB

City gas distributors will become Consumption of gas by refi neries
the largest natural gas demand driver in and petrochemical complexes is
the country by 2030, far ahead of the also expected to nearly double to
current top consumer fertiliser sector, 43.3-mmscmd by 2030 from the current
according to a study by Petroleum and 22-mmscmd as more petchem capacity
Natural Gas Regulatory Board (PNGRB), gets added. Petrochemical production
which projects India’s natural gas capacity is projected to increase to
consumption to rise 8% annually to 46 million tonnes a year by 2030 from
297-million metric standard cubic the current 29.62-million tonnes in the
metres a day (mmscmd) in fi ve years. country.

The city gas segment, which to 65.3-mmscmd in 2030. Its share in Gas consumption by the power
accounts for a fi fth of total consump- overall consumption is projected to sector will grow to 35.7-mmscmd by
tion in the country, will expand nearly drop to 22% by 2030 from 31% today. 2030 from 25.2-mmscmd.
two-and-a-half times to consume
87.1-mmscmd of natural gas in 2030, The government thrust on populari- “Favourable global market trends
up from 36.9 in 2024, according to a sing natural gas in the country has been for LNG availability, continuous infra-
PNGRB’s scenario based on current driving the fuel’s demand, especially in structure expansion, rising economic
trends and commitments. The city the city gas sector where distribution activities, and supportive policies are
gas distributors will account for 29% infrastructure is fast building up. expected to contribute signifi cantly to
of total consumption in 2030. In the Increased pipelines, proliferation of CNG the increased adoption of natural gas
same scenario, the fertiliser sector is vehicles and affordability are driving across various sectors,” PNGRB said in
expected to grow merely 2% annually up gas consumption. its study.

SOURCING STRATEGY
GAIL India seeks 26% stake in US LNG project

GAIL India Ltd. has issued a tender a plant in the US on a free-on-board has revived the tender as Trump’s
on April 11 to buy up to 26 percent basis for a period of 15 years, it said, administration has lifted the ban.
stake in a liquefi ed natural gas (LNG) adding the deal could be extended by fi ve
project in the US combined with a to 10 years. The document also showed India is the world’s fourth largest
15-year gas import deal. GAIL wants to start taking LNG from LNG importer and aims to raise the share
the US project by 2029-2030. The last of gas in the country’s energy mix to 15
GAIL has invited initial bids from date for the US projects to submit bids percent by 2030 from 6.2 percent now.
companies as it seeks to buy equity in is April 28. To boost its US energy im- GAIL has contracted to buy 15.5-million
an existing LNG liquefi cation project ports, India is also considering scrap- tonnes annually of LNG, including
or a new project that would be commis- ping its import tax on US LNG to make supplies from the Australia, Qatar and
sioned by 2030 at the latest, the docu- it more price competitive, and help trim the United States and traders Vitol and
ment published on its website showed. its $45.7-bn trade surplus with the US. Adnoc, according to its annual report for
The US is already the second biggest 2023-24. Its long-term deals with com-
supplier to India. Qatar is the biggest GAIL had to stall a similar process panies in the US include the purchase
LNG supplier to India. in 2023 to buy a stake in a US LNG of 5.8-million tonnes per year of LNG,
plant after then-President Joe Biden split between Berkshire Hathaway En-
State-run GAIL wants 1-million banned export permits for pending and ergy’s Cove Point plant and Cheniere
metric tonnes per annum of LNG from new LNG projects. The Indian company Energy’s Sabine Pass site in Louisiana.

154 Chemical Weekly April 22, 2025

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