Page 147 - CW E-Magazine (10-9-2024)

Hydrocarbons

TREND ANALYSIS
India’s natural gas demand to grow by 5-bcm

in 2024: IGU report

The demand for natural gas in natural gas as a feedstock, the IGU gas pricing formula was introduced,
India is expected to grow by more than report pointed out. Quoting Indian linking prices partially to crude oil with
7 percent year-on-year (y-o-y) in the Government data, the report said that a ceiling of $6.50 per mBtu, aiming to
current calendar year on the back of CNG vehicles, including three-wheelers make gas more affordable for consu-
rising consumption from the sectors of and cars, grew 53 percent y-o-y to mers, especially in the city gas and ferti-
industry and transport, according to an 1,80,000 in India from 2022 to 2023. liser sectors. This is expected to lower
analysis by the International Gas Union prices by $1-2 per million British
(IGU). IGU, headquartered in London, “As a result, demand for natural gas thermal units (mBtu).
is a global association promoting gas from transport increased by 1-bcm in
as an energy source. In its 2024 edition the period, a trend slated to continue. “However, such caps can introduce
of the global gas report, IGU said India With increased access to natural gas the pitfall of distorting long term eco-
will continue to be the second largest through the city gas distribution net- nomics for suppliers and producers,
growth market for natural gas after work, the residential and commercial resulting in a mismatch of investment
China, albeit at a slightly slower pace. sectors also saw a boost, growing by and ultimately slow down progress for
1-bcm in 2023 relative to 2022 levels,” gas access,” it added.
Gas consumption by the world’s it added.
fourth largest liquefi ed natural gas Besides, India also revised its gas
(LNG) importer is expected to grow Increasing share transmission tariff structure, imple-
7.1 percent y-o-y, or around 5-billion India has an “ambitious target” to menting a ‘unifi ed’ system to replace the
cubic metres (bcm), in 2024. India’s increase the share of natural gas in its zonal structure, reducing transmission
consumption rose by 12.7 percent primary energy mix from the current costs for inland industries and city gas
y-o-y, or around 7-bcm, in 2023. “In 6.7 percent to 15 percent by 2030, sur- distributors. These changes are likely
India, industrial and transport demand mounting challenges of affordability to boost domestic consumption and
will largely continue to drive growth in and availability, the report said, adding encourage fuel switching from coal and
gas demand, balancing a slower pace of that to address these issues, the country oil to natural gas – a positive possibility
residential and commercial natural gas has implemented several policy mea- for reducing greenhouse gas emissions
demand growth,” it added. sures. In March 2023, a new domestic and improving air quality, it added.

According to industry observers, MRPL commissions marketing
demand for gas from the industry has
been robust and is expected to continue terminal in Bengaluru
in the short to medium term fuelled by
the green energy transition. Besides, Mangalore Refi nery and Petro- gonthi in Bengaluru would cater to the
the growth in vehicles running on chemicals Ltd. (MRPL) has announced requirements of petroleum products,
compressed natural gas (CNG) is also the commissioning of its new market- primarily in Karnataka. The terminal
pushing up consumption. ing terminal in Bengaluru. would receive fi nished petroleum pro-
ducts through the existing pipeline from
In India, gas demand growth was According to a company statement, MRPL. This terminal would enable the
driven by industry, growing by 16.3 the facility aims to enhance the avai- supply of petroleum products to retail
percent, or 6-bcm y-o-y in 2023. The lability and distribution of petroleum outlets, customers, and aviation stations
fertiliser sector was particularly one products such as petrol, diesel, and in the region, it said. The company
of key gas consumers in India, as aviation turbine fuel (ATF) in the region. statement said this terminal would
increasing domestic urea production ensure the cost-effective placement
led to a one-fi fth reduction in imports MRPL’s annual report for 2023-24 of ATF near major airports, including
of the material, boosting demand for said the marketing terminal at Devan- Bengaluru.

Chemical Weekly September 10, 2024 147

Contents Index to Advertisers Index to Products Advertised