Domestic demand for natural gas is seen rising by 12-14% in the new fiscal, despite its price being hiked to a record $6.1 per mmBtu, as against $2.9 per mmBtu earlier.
Healthy growth in downstream sectors like city gas distribution (CGD) and fertilisers will drive growth in demand as, despite the high price, gas will remain 5-40% cheaper compared with substitutes such as petrol, diesel, LPG, furnace oil, and naphtha, CRISIL has said.
