Natural gas demand falls amid COVID-19; production hit too, but may recover as economy unlocks

The domestic natural gas consumer demand and production took a hit during April-August period this year with the coronavirus pandemic hitting the country. The production fell sharply in FY21 as compared to the comparable period last year, a report said on Wednesday. “Cumulative fall in production is mainly due to restricted/ no gas off take by consumers due to COVID-19 situation and shutdown at consumers’ end,” a CARE Ratings report said. Further, environmental issues, which resulted in bandhs/blockade by local people with concerns associated with Baghjan well blast, also took a toll on cumulative production. While the domestic natural gas production declined 1% last year, it witnessed a slide of 13.2% during FY21 (April-August).