India's June LNG Imports Drop Almost 10%

LNG imports into India in June fell almost 10% year on year to 1.76bn m³, data published by the Indian oil ministry's Petroleum Planning and Analysis Cell showed July 20.

Cumulative LNG imports during the first three months of the year from April were 5.88bn m³, down 5.7% year on year. India's LNG imports had risen sharply last year, up by 15.5% to 24.6bn m³. LNG imports fiscal 2016‐17 were the highest during the past four years. 

Qatar is the largest supplier of LNG to India. And, given the backdrop of low global LNG prices, Indian Petronet LNG insisted on renegotiating its long-term contract with Qatar's RasGas. In December 2015, the two parties 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, 2016, India’s LNG terminal capacity could more than double by 2022 as existing terminals expand and new ones are commissioned.

Shardul Sharma