"India's natural gas consumption in 2024 will likely grow 5-6 per cent", says Suresh Manglani CEO of Adani Total Gas

New Delhi [India], February 17 : Sharing insights into India's burgeoning gas sector, Executive Director and CEO of Adani Total Gas Limited Suresh P Manglani has forecast a 5 per cent to 6 per cent increase in natural gas consumption in 2024, commensurate with an estimated economic growth of 6 per cent-7 per cent in the country.
He said this in an interview with S&P Global Commodity Insights.
"India's natural gas consumption in 2024 will likely grow 5 per cent-6 per cent corresponding to an estimated economic growth of 6 per cent-7 per cent, with its share boosted in future if the country taps two 'hidden jewels' -- Micro, Small and Medium Enterprises (MSMEs) and LNG for transport and mining (LTM)," Manglani said.
According to S&P Global Commodity Insights, Manglani outlined strategic opportunities for growth, emphasizing the pivotal roles of Micro, Small and Medium Enterprises (MSMEs) and LNG for transport and mining (LTM) in driving future demand.
Manglani underscored the potential for an additional demand of around 100-120 MMSCMD (Million Metric Standard Cubic Meter per Day) if MSMEs are provided with a supportive ecosystem to transition to natural gas.
He advocated for consumption-linked incentives to accelerate India's progression towards natural gas, thereby stimulating trade for City Gas Distribution (CGD) companies and enhancing pipeline and terminal utilization.
Regarding transportation, Manglani emphasized the need for a phased transition from diesel to LNG for long-haul vehicles such as trucks and buses.
He projected a significant surge in LNG demand for transport by 2030, highlighting the opportunity for CGD companies to capture this growing market.
"While LNG prices will always retain some element of volatility, triggered by events like the Russia-Ukraine war or the Red Sea attacks, prices have mostly stabilized presently. Because of increasing domestic gas production and the strong CGD distribution network, I think India is well placed", Manglani said.
Addressing infrastructure developments, Manglani expressed optimism about India's increasing domestic gas production, improved pipeline connectivity, and expanding Regasified Liquefied Natural Gas (RLNG) capacity.
He emphasized the favourable outlook for India amidst expectations of a supply glut of LNG from 2025-26 onward, attributing it to the country's evolving infrastructure and distribution network.
In response to market volatility, Manglani revealed that Adani Total Gas has reshaped its strategy to reduce reliance on spot contracts, opting for a diversified portfolio across multiple indices and tenures. He highlighted the company's commitment to growth strategies, including expansion into new geographies through CGD licenses and promoting LTM and e-mobility initiatives.
Adani Total Gas's latest quarterly results, released on January 30, 2024, showcased a 21 per cent year-on-year increase in CNG sales volumes and a 1 per cent growth in PNG volumes for the nine-month period that ended December 31, 2023.
Manglani affirmed the company's commitment to clean and sustainable fuels, evidenced by its initiatives in LNG retail, EV charging infrastructure, and biomass energy projects.
As part of its holistic approach, Adani Total Gas Limited (ATGL) is developing a comprehensive portfolio of clean energy solutions, positioning itself as a key player in India's transition towards a greener future.
"It was building its first LNG Retail Outlet in Dahej, Gujarat which is expected to be commissioned by July 2024. Meanwhile, Adani TotalEnergies E-mobility Limited has already commissioned 329 EV charging points across 10 states while over 1050 EV charging points are under construction," the ATGL said in January.
With ambitious growth strategies and a commitment to sustainability, Adani Total Gas is poised to play a transformative role in India's evolving energy landscape under Manglani's leadership.
"So, Adani Gas is developing a holistic basket of clean and sustainable fuels," Manglani added.