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Informist, Thursday, Jul. 17, 2025

MUMBAI - India's consumption of natural gas in May fell 11.4% on year to 5.9 billion cubic metres, mainly due to weaker demand in power generation, fertiliser, and refinery sectors, according to the Gas Exporting Countries Forum. Consumption of natural gas by the power generation sector declined in May by 35% on year, that by fertiliser sector by 10%, while the refinery sector witnessed a fall of 5.6%, the intergovernmental organisation comprising the world's leading gas exporters said in its monthly report for July.

Despite the decline, fertiliser companies remained the largest consumer of natural gas, accounting for 26% of total demand, followed by city gas distribution at 23%, power generation at 14% and refining at 8%, it said.

In the first 5 months of 2025, aggregate gas consumption in some of the major gas consuming countries, which account for 75% of global gas demand, increased by 2.9% on year to reach 1.55 trillion cubic metres. Growth was recorded in the European Union, the UK, and North America, while Asia showed a decline. For the full year 2025, global gas consumption is forecast to increase by 2%, influenced by continuous growth in the power and industrial sectors.

Global gas production in May was estimated to have risen by 1.8% on year to 354 billion cubic metres. Africa, Asia Pacific, West Asia, and North America showed positive production variation, with North America, specifically the US, leading the growth. On the other hand, Europe witnessed the largest decline in output among the remaining production regions, driven by lower gas output in Norway.

For Jan–May, the report has estimated global gas production at 1.76 trillion cubic metres, up 0.9% on year. "This rise was mainly driven by the strong production growth in North America, which counter-balanced the decrease in the output levels of Eurasia and Europe," it observed.

Continuing the trend of falling gas production into the 11th consecutive month, India recorded a decline of 3.8% on year to 2.87 billion cubic metres in May. "The decline was driven by the reduction in offshore gas output, which constituted 72% of Indian production and recorded a decline of 4.5% on year, along with reduced production from the onshore Tamil Nadu and Assam fields."

In the first five months of calendar year 2025, the cumulative production of natural gas in India amounted to 14.5 billion cubic metres, a fall of 3.4% on year, the report noted.   End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Abhijit Doshi

Edited by Vandana Hingorani

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