India saves USD 1 bn on LNG imports in April-May this year

India's natural gas imports fell by 7.2% in May year-on-year to 2,650 MMSCM, as domestic production rises. For April-May, imports dropped by 1.3% to 5,299 MMSCM. India spent $2.2 billion on LNG imports in April-May 2024-25, a significant decrease from $3.2 billion in the same period last year, saving $1 billion. May 2024 saw a 6.7% increase in gross natural gas production to 3,105 MMSCM. Overall, April-May production rose by 7.2%. While demand growth remains nominal, domestic production now covers 55% of the country's needs.

New Delhi: With domestic natural gas production rising, India’s natural gas imports have declined, leading to substantial savings of USD 1 billion in the April-May period, according to government data. In May, India’s gas imports dropped by 7.2 percent year-on-year to 2,650 MMSCM. In contrast, during May 2023, India imported 2,854 MMSCM of Liquefied Natural Gas (LNG). This trend continued in the April-May period of the current fiscal year, with India importing 5,299 MMSCM of LNG, a 1.3 percent decrease from the 5,368 MMSCM imported during the corresponding period of the previous financial year.

In the April-May period, India saved USD 1 billion on LNG imports due to reduced volumes and cooling prices. The country spent USD 2.2 billion on LNG imports in April-May 2024-25, a significant reduction from the USD 3.2 billion spent in April-May 2023-24.

India’s natural gas production saw a 6.7% year-on-year increase in May. The gross production of natural gas for May 2024 was 3,105 MMSCM, which is higher by 6.7 percent compared to the same month the previous year. The cumulative natural gas production of 6,063 MMSCM for the current financial year up to May 2024 was 7.2 percent higher compared to the corresponding period of the previous year.

However, the growth in domestic gas production is not matched by a corresponding rise in demand. This discrepancy does not impact sales significantly as India currently meets around 55 percent of its gas demand through domestic production, with the remainder being met through imports. Nonetheless, the data signifies that domestic gas demand in India is experiencing nominal growth despite the government's plans to increase the share of natural gas in the energy mix from the current 6 percent to 15 percent by 2030.