“India's LNG imports see sharp rise in June to meet electricity demand during heatwaves”
India witnessed a significant increase in liquefied natural gas (LNG) imports last month as power generation from gas-fired plants was ramped up to fulfill the spike in electricity requirement amidst severe heatwaves across the country. Data from vessel tracking platform Kpler reveals that LNG deliveries to India in June totalled 2.60 million tonnes, which is the highest level seen in over three and a half years.
This surge in LNG imports can be attributed to gas-based power stations fulfilling a much larger share of power needs at a time when scorching temperatures drove air conditioning use to all-time highs. According to figures from the Central Electricity Authority, output from gas-fired units jumped over 50% year-on-year in June to 4.60 billion units. Similarly, their plant load factor or capacity utilization surged to around 26% last month from 17% in June 2023.
For the key summer quarter of April to June, generation from gas plants expanded by 63% annually to 13.49 billion units while the average plant load factor climbed to approximately 25% from 15%. This uptick is consistent with instructions given by the Power Ministry earlier to idle gas stations to operate throughout the heatwave period till the end of June to satisfy demand.
With domestic gas meeting only half of the country's total consumption and having priority sectors, imported LNG currently constitutes a major portion of the fuel used by gas-fired power facilities. However, July and August imports are projected to be lower than June volumes owing to an anticipated slight dip in power demand and relatively higher spot LNG prices globally in the ongoing monsoon season.
