Soaring temperatures in India likely to result in ramp-up of gas-fired power generation

The India Meteorological Department has issued potential heat wave warnings in pockets of several states in the country, with industry sources predicting that the soaring temperatures will likely result in higher gas-fired power generation.

"Daily grid-connected power demand reached 234.1 aGW on April 23, and it was a new record for 2025," Andre Lambine, senior power analyst at S&P Global Commodity Insights, said April 25.

Demand is high, but still about 4.5% or 11 aGW lower than the record for 2024, Lambine added.

"Gas-fired power generation is likely to stay elevated to help meet the high demand," Lambine said.

An India-based source said that gas consumption in the power sector increased in the week starting April 21, with current consumption levels likely above 12 mmscm/day.

Market sources said that procurement for regasified LNG was stepping up for May deliveries.

In a statement on April 24, the IMD forecast maximum temperature warnings in the range of 40-45 degrees Celsius in some or many stations in various states for the period spanning April 24-May 7.

"Maximum temperatures were in the range of 40-45 C at many/some stations over interior Maharashtra, Gujarat, west and southeast Rajasthan, Madhya Pradesh, East Uttar Pradesh, Bihar, North Chhattisgarh, interior Odisha, northwest Jharkhand, Telangana, Rayalaseema and North interior Karnataka," it said.

On April 23, the highest maximum temperature of 45.6 C was reported at Brahmapuri (Vidarbha) over the country, the IMD said.

Maximum temperatures were "appreciably above normal (3.1 C to 5.0 C)" at isolated places over Gujarat state, Vidarbha, Jharkhand, Telangana, Gangetic West Bengal, it added.

Meanwhile, the IMD predicted "very likely" heat wave conditions in isolated pockets over West Madhya Pradesh during April 24-30; Rajasthan during April 25-30; East Madhya Pradesh during April 24-27; Uttar Pradesh, Vidarbha, Bihar, Odisha, Jharkhand, West Bengal during April 24-26; Punjab, Haryana during April 25-29; Chhattisgarh, Telangana, Madhya Maharashtra, and Marathawada on April 24 and April 25.

Platts, part of Commodity Insights, assessed the June JKM, the benchmark price for LNG cargoes delivered to Northeast Asia, at $11.18/MMBtu on April 24, down 42.3 cents/MMBtu, or 3.6%, day over day. It assessed the LNG West India Marker, or WIM, for June at $10.85/MMBtu on April 24, at a discount of 33 cents/MMBtu to the June JKM assessment.