Since late May, GMTS has defaulted its supply obligations to GAIL, and eight cargoes have not been delivered thus far this year. GMTS is expected to provide GAIL with 36 loads, or 2.5 million tonnes, for the entire year.
India's goal to increase the proportion of gas in its energy mix to 15% by 2030 from around 6.4% now appears improbable, analysts said, as domestic supply will continue to fall short of demand, and insufficient evacuation infrastructure may prevent large-scale imports that would be necessary to achieve the ambitious goal.
India's net natural gas production has decreased over the past ten years; it was 33,131 million standard cubic meters (mcm) in FY22 as opposed to 39,753 mm in FY13. Gas that is available for consumption is known as net production. Natural gas output on a gross domestic basis increased in FY22 from FY21 to FY22, reaching 34,024 mmm. The largest gas producer in the nation, ONGC contributed almost 61% of the nation's production in FY22.
On the other hand, India's consumption of natural gas increased to 63,907 mm in FY22 from 57,367 mmm in FY13 as a result of rising demand from the city gas distribution (CGD), fertilizer, and other industries. Fertilizer consumption accounted for 30% of India's overall gas consumption in FY22, which was followed by CGD usage (20%) and the power industry (15%).