A report by India Ratings and Research (Ind-Ra) on India’s oil and gas sector highlights the trends in the sector, with a focus on domestic production, import, consumption, refining and gross under-recovery, regulatory changes and recent rating actions.
India’s dependency on imported liquefied natural gas (LNG) has increased, indicated by stagnant domestic natural gas (NG) production and increased imports since 2008, opines Ind-Ra. The average imported LNG share was 45% of the overall domestic NG consumption in FY18 as compared with 25% in FY08.
LNG imports increased at a CAGR of 9.2% to 73 million metric standard cubic meters per day (mmscmd) in FY18 from 30mmscmd in FY08 due to sustained demand. The increased use of NG in fertiliser and power sectors coupled with growth of city gas distribution network has driven the domestic NG consumption. On the other hand, domestic NG production has been stagnant at 90mmscmd with a CAGR of 0.1% since FY08. This has led to increased reliance on the import of LNG, as domestic consumption has been gradually increasing.
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