Economic Times: LNG Import Terminals to Face Major Challenges

New LNG import terminals will face major challenges due to price sensitive demand, Icra said in its latest update on gas utilities sector. 

According to Icra estimate, gas demand will increase to 330 million standard cubic meters per day by 2024-25, while domestic natural gas production will rise by 60 per cent to around 150 mmscmd. 

The domestic output increase is contingent upon GSPC's Deen Dayal block and ONGC's KG basin blocks going on stream along with marginal increase in Reliance Industries' KG production, the rating agency said. 

"Despite high domestic demand-supply deficit, the demand for Regasified-Liquefied Natural Gas (R-LNG) in the country is critically dependent upon the prices of liquid fuels and global spot LNG prices," Icra said. MORE