India's January LNG Imports Drop 15%

India’s LNG imports witnessed a drop for the second successive month in January. After falling by 2.9% in December, imports in January were lower by almost 15% on year to reach 1.6bn m³, latest data published by oil ministry’s Petroleum Planning and Analysis Cell showed.

For the April-January period, however, India’s LNG imports were up by a healthy 16% on year at 20.4bn 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 operating 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