Natural gas consumption in the country has risen 2% in November from a year earlier, signalling a rebound in the industrial activity.
The consumption rose to 5.2 billion cubic meters (BCM) from 5.1 BCM last November, as per the official data. The demand for the April-November period is down nearly 5% from last year.
“There has been a growth in consumption as the economic activities regain slow and steady growth,”the oil ministry’s Petroleum Planning & Analysis Cell said in its monthly report.
The initial demand recovery was led by the fertilizer and power plants and refineries.“City gas demand that had sharply dropped due to the lockdown is also returning with new city gas licensees setting up CNG fuelling stations,”said E S Ranganathan, director (marketing) at GAIL NSE 3.31 %, the nation’s largest gas marketer.
Lockdown had curbed public transport, a key consumer of compressed natural gas in big cities like Delhi and Mumbai. With schools still shut, a big segment of CNG buses are still not on the roads. But the deficit is being met by new CNG pumps being set up in new city gas license areas. Increased activity in smaller factories, which get supply from city gas distributors, has also helped.
Fertilizer is the biggest consumer with about 30% of all gas consumed while power takes about 20%. City gas distributors have recovered to 18% while refinery and petrochemicals take about 14% and 6% respectively.
The demand for natural gas for cooking at home has remained steady although it has fallen sharply for restaurants this year due to fewer people eating out.
India imports a little more than half of its natural gas requirement and lower international prices for many months also helped boost domestic demand. Rates of natural gas have risen in the international market now, which can have adverse effect on consumption.
