India's LNG Imports Continue to Climb

India’s LNG imports continue double digit year-on-year growth as low prices attract buyers. According to latest data published by oil ministry’s Petroleum Planning and Analysis Cell (PPAC), LNG imports in September were 2.37bn m³, up almost 33% compared with the same month last year. Cumulative imports too remain substantially higher. For the April-September period, India’s LNG imports were 12.7bn m³, up almost by 27% on year.

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 and 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 operational LNG terminals: Dahej, Hazira and Dabhol in northwest India, and Kochi in the southern state of Kerala. 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 get commissioned.

Domestic production

India’s gross gas output in September stood at 2.6bn m³, down almost 6% year-on-year. Cumulative output for April-September was 15.72bn m³, down about 4.4% on the same period of previous year. 

Shardul Sharma