Decreased foreign gas prices to boost usage by over 30%, according to the MD of IGX

The government is pushing for more gas-based energy to meet the increasing power demand of domestic businesses and power plants. Natural gas consumption is expected to rise by 30-35% in FY25 compared to FY24 due to the declining global prices.

In order to fulfill the increased demand for power throughout the summer, the government has also released guidelines under Section 11, which is a fuel consumption standard for any defined class. These rules are intended to help gas-based power plants begin operations. The network of PNG and CNG stations is also being extended across the states. The country will require more gas due to all of these factors plus the lower prices abroad.

IGX is offering small-scale and long-term LNG contracts tied to Brent Crude, JKM, and WIM to meet the industry’s demand for power and give stakeholders flexibility in selecting a benchmark for their trade.

The decreased supply of domestically produced gas available for trading on the platform in FY24 as opposed to FY23 is the cause of the decline in trade. In reference to the government’s goal of having gas-based energy account for 15% of total energy consumption by 2030, “At the moment, gas-based energy accounts for roughly 6% of total energy consumption. This occurred against the backdrop of the Russia-Ukraine War, during which time gas prices skyrocketed to roughly $30 per millibarrel.

Leave a Reply

Your email address will not be published. Required fields are marked *