Margin risk for city gas distribution players on higher LNG prices

Till date gas consumption in FY24 is up 15 per cent YoY after three years of declines

Gas demand has soared, hitting high levels of an average 198 million metric standard cubic metres per day (mmscmd) in October 2023, after averaging between 193 and 198 mmscmd during August-September.

The consumption was split among fertiliser (61.1 mmscmd in October 2023, vs. 57-59 mmscmd in August-September 2023); power (28.3 mmscmd in October, down slightly compared to August-September; city gas distribution or CGD (38 mmmcd in October, vs. 36.3 mmscmd in September) and other industrials (70.7 mmscmd in October vs. 70 mmscmd in September).

Till date, gas consumption in FY24 is up 15 per cent year-on-year (Y-o-Y) after three years