Seasonal surge in power sector consumption, steady city gas distribution drivers

This summer, demand for natural gas surged to a peak of 202.4 mmscmd, as elevated temperatures drove up power needs. The government invoked Section 11 of the Electricity Act, 2003, to ensure gas-based power plants were operational to meet summer electricity demand, which facilitated liquefied natural gas (LNG) imports. Consequently, LNG imports rose 9-10% onyear, whereas consumption by the power sector grew 26.6% during the peak summer months.

This surge was, however, counterbalanced by a 4.8% decline in consumption during the monsoon compared with the summer level. Improved rainfall and lower temperatures contributed to a 1.8% on-year decrease in overall demand.

Yet, for the first half of this fiscal, overall natural gas consumption was up 9-10% on year, climbing from 182.1 mmscmd to 198-201 mmscmd