Outlook for gas: Plant load factor to double by FY25; fertiliser and power sectors to benefit from move

Utilisation levels of gas-based power plants are seen to double by FY25 from current levels, driven by increased domestic gas production from the east coast fields and prices of liquefied natural gas (LNG) becoming competitive. As per a recent report by HDFC Securities, plant load factor (PLF) for gas-based power plants are seen to rise from 18% in July this year to 36% by FY25, and “this should drive an incremental total demand of 13 million standard cubic meter per day (mscmd) between FY21-25 (estimated)”.

Fertiliser and power sectors are the largest consumers of natural gas, consuming 51% of total gas available in the country.