Gas consumption of India surges to 11% in 2024

Industrial gas consumption in India rose by 22%, refining usage by 26%, residential and commercial use by 14%, and transportation by 12%, reflecting a significant surge in demand across key sectors. During May through July, the intense heat required residents to use 32% more natural gas to power their air conditioners.

An International Energy Agency (IEA) market study shows that gas usage rose 11% in 2024, which boosted India's LNG import growth by 21%. The report highlighted, “This demand growth led to a 21% year-on-year rise in LNG imports, supported by average spot LNG prices in India that were more than 12% lower than a year ago.”

The IEA also noted a sharp rise in LNG tender activities, stating, “In 2024, the number of LNG cargoes tendered for delivery (both supplier offers and user invitations) in India increased by 70% year-on-year. The number of cargoes awarded increased by 85%, while the number of cargoes not awarded decreased by 20%.”

India wants natural gas to account for 15% of its energy resources by 2030, though today it makes up 7%. Under regular weather conditions, gas consumption should rise by 8% worldwide during 2024, thanks to economic expansion and increased power requirements. The nation faces problems because its decreasing natural gas supplies cannot meet its expanding energy requirements. India uses more natural gas now than ever before because it needs imported LNG to meet its industrial needs.