OIL & GAS

City gas volumes impacted in 2nd wave, drop less severe than first

City gas volumes have been impacted by the second wave of COVID-19 induced lockdowns, but the drop is less severe than the first wave, Icra said on Tuesday. While lockdowns reduced mobility and vehicular mobility impacting CNG sales volumes by 20-25 per cent, gas consumption in industries dropped due to reduced activities. But the drop in piped cooking gas consumption is relatively lower.

The CGD sector domestic gas volumes declined by 12 per cent month-on-month to 15.2 million standard cubic meters per day in April 2021, as the transportation and passenger mobility segments were hit the hardest by lockdowns. However, this remains higher than the consumption of 4.2 mmscmd in April 2020, Icra said.

In May 2021, CNG volumes declined further as the COVID-19 wave intensified and more states imposed lockdowns, it said without giving details. While the lockdowns have resulted in reduced industrial activity, the impact has not been as severe as in 2020.

The drop in LNG consumption for CGD entities remained lower than that of domestic gas, with volumes remaining roughly stagnant since February 2021. About 49 per cent of the gas required by the CGD sector is sourced from LNG imports.

“India’s City Gas Distribution (CGD) demand has slumped as a result of the second wave of COVID-19.

Source
ET Energy World
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