Covid-19: India’s plan to build gas-based economy receives setback

India’s plan to develop a gas-based economy with the cleaner fuel gradually becoming the mainstay of countrys energy security needs has received a major setback as the Covid-19 pandemic has severely impacted demand, resulting in curtailed operations globally.

In India the current lockdown has led to 15-20 per cent overall demand hit due to the closure of most of the factories in sectors excluding fertiliser, power and refineries. This has resulted in curtailed operations by gas producing companies such as OIL and ONGC,

According to brokerage firm Emkay, GAIL may see a 15-20mmscmd decline in marketing volumes as the lockdown progresses, while transmission volumes may also decline up to 10-15mmscmd.

In addition, with the closure of distribution channels and truck transportation, GAIL’s petchem sales have stopped.

Other gas companies such as GSPL have seen its throughput down by 5mmscmd, with CGD being the major reason. Morbi ceramic offtake is seen falling by over 4mmscmd to under 3mmscmd currently, while CNG sales in Gujarat is down 80 per cent.

CNG sales in Delhi and Mumbai are also estimated to be down 70-80 per cent as except for a reduced number of buses and essential service vehicles, other vehicles remain mostly off-road.

Indraprastha Gas Ltd (IGL) had said that it will rationalise its services and operate only 55 of its CNG stations in Delhi-NCR till March 31 due to the ongoing lockdown.

Et energy world
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