India is now experiencing the pressure of supply disruptions linked to the escalating tensions in West Asia, slowing LPG shipments headed for the Indian ports. Supplies were either halted or reduced drastically in states such as Maharashtra, Punjab, Andhra Pradesh, from Monday.
Here’s a look at India’s gas economy and how it functions:
India consumes 190 million metric standard cubic metre (mmscm) of gas per day. Half of this is imported.
Breaking this down sector-wise, fertiliser consumes 58 mmscmd gas per day, power consumers 25 mmscmd, while refineries and petrochemicals and city gas distributors consume 22 and 37 mmscmd gas each day, respectively. The balance is consumed by other sectors.
There are three types of gas fuels — liquefied petroleum gas (LPG), piped natural gas and commercial or industrial gas which is supplied via the city gas network.
LPG
India consumed around 29.6 million tonne LPG in the financial year 2024. The country’s monthly consumption averages around 2.6 million tonne.
The country now has over 33 crore LPG consumers. Around 90% of the LPG demand comes from households, while the rest is from hotels, etc. More than 60% of our LPG needs are imported, 90% of which is routed via the Strait of Hormuz.
PNG
PNG is supplied by city gas distributors such as Mahanagar Gas Ltd. (MGL), Gujarat Gas Ltd., Indraprastha Gas Ltd. (IGL).
PNG is used in households and commercial establishments such as hotels and restaurants.
Commercial and industrial gas demand
The demand for commercial and industrial gas comes from hotels, restaurants, hospitals, manufacturing units, glass and ceramic factories.
Here’s a roundup of the gas demand and usage per day:
Disruption in supply
Restaurant operators warned that shortage of LPG supplies could disrupt food services and force them to shut operations. This could eventually also impact food delivery operators.
The Centre has issued an order stating that natural gas supplies, including regasified LNG, will be redirected towards priority sectors. Click here to read more about the multiple priority tiers based on sectoral importance.
Fertiliser stocks have staged a rebound after the Natural Gas order, while City Gas players are trading with gains between 0.4% to 4%.
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