Much optimism on gas demand; consumption to zoom in the near term

According to Petronet LNG, the country's demand is set to increase by 82 per cent to 654 mscmd by 2026-27

One more terminal for import of liquefied natural gas (LNG) was inaugurated last week. At first glance, one wonders why. For, the country’s demand is currently far behind the capacity to supply.

Pipeline utilisation of state-run GAIL India is a mere 40-45 per cent; it is having a problem finding further markets for imported LNG. "A majority of gas-based power plants have got stranded. Between 50 to 60 per cent of the LNG we have contracted from the United States will be sold outside or swapped due to demand shortage," said a GAIL official, asking for anonymity. 

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