The city gas distribution (CGD) sector’s domestic gas volumes declined by 12 per cent month-on-month to 15.2 million metric standard cubic metre per day (MMSCMD) in April as transportation and passenger mobility segments were hit the hardest by lockdowns, according to investment information firm ICRA.
However, this remains higher than the consumption of 4.2 MMSCMD in April last year.
CNG volumes declined further last month as the Covid-19 wave intensified and more states imposed lockdowns. While the lockdowns have resulted in reduced industrial activity, said ICRA, the impact has not been as severe as in 2020.
Thus the drop in regasified liquefied natural gas (RLNG) consumption for CGD entities remained lower than that of domestic gas with volumes remaining roughly stagnant since February.
About 49 per cent of gas required by CGD sector is sourced from RLNG imports.
Sabyasachi Majumdar, Group Head and Senior Vice President at ICRA, said CNG volumes are expected to start recovering from the lows of May as several states have begun easing restrictions amid a decline in infections.
“While industrial activities have reduced, they have not halted in a manner similar to that in 2020, resulting in a relatively lower drop in industrial piped natural gas consumption,” he said.
Majumdar said while commercial volumes were severely impacted, domestic volumes remained resilient.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.