India's December LNG Imports Drop Almost 3%

India’s double-digit LNG import growth took a breather in the month of December, falling 2.9% on year, according to oil ministry’s Petroleum Planning and Analysis Cell. The total imports last month were 1.9bn m³, witnessing a drop for the second time in the current fiscal year (April-March). Imports were lower in July when they shrank by 3.8%.

For the April-December period, however, India’s LNG imports were up by a healthy 20% on year at 18.75bn m³.

The cost of importing LNG has dropped sharply this year after New Delhi signed a revised long term contract with Doha. Qatar is the largest supplier of LNG to India. Given the backdrop of low global LNG prices, Petronet LNG insisted on renegotiating its long-term contract with RasGas. In December, the two parties have signed a revised deal. The revised formula bases the price on a three-month average figure of Brent crude oil, replacing a five-year average of a basket of crude imported by Japan.

India has four operation LNG terminals- Dahej, Hazira, Dhabol and Kochi. According to a document released by the oil ministry on June 3, India’s LNG terminal capacity could more than double by 2022 as existing terminals expand capacity and new ones are commissioned.

Shardul Sharma