This year in July, LNG import in India (liquefied natural gas) has reduced first time, putting an end to the sudden surge in growth since January. The main reason behind this is consumption not rising as much and the increase in local production.
In July 2015 India imported 2037 mmscm of gas and about 4 % less 1960 million metric standard cubic meters (mmscm) of LNG in July this year. This analysis is made by Oil ministry’s Petroleum Planning and Analysis Cell (PPAC).
In February A substantial turn down has been seen in growth from 62 percent, to above 40 percent increase each in March, April, and May. The average increase in LNG import was nearly 30 percent from January to July. in the same time period The local natural gas output increased from 2511 mmscm to 2621 mmscm. As the increased local supply easily provided to the almost same consumption of 4.58 billion cubic meters, hence the demand for additional natural gas imports was not there in July.
between April and July this year, The local gas consumption increased by 6.5 per cent whereas LNG import has grown by 22 per cent. as gas is one of the cleanest conventional fuels, India is on the path to increase usage of it. The use of LNG in factories, vehicles, and homes comes from International pressure to cut the carbon footprint. Due to falling price, LNG is more affordable to use. in between $5 and $6 per unit, LNG prices are moving that is about fall of three-fourths since the 2014 beginning.
As shown in a report, the usage of natural gas in India is less, so there is a reduction in import in July. The availability of cheaper competing fuels is cited as a cause. Power producers do not desire to use natural gas the electricity generated by natural gas is expensive for the clients.