India's October LNG Imports Up 18%

India’s LNG imports have continued their double digit year-on-year growth as low prices attracted buyers.

According to latest data published by oil ministry’s Petroleum Planning and Analysis Cell (PPAC), LNG imports in October were 2.26bn m³, up almost 18.6% compared with the same month last year. Cumulative imports too remain substantially higher. For the April-October period, India’s LNG imports were 14.9bn m³, up by 25% on year.

Around 50% of the total LNG import in October was from Qatar, 10.71% from Singapore, 7.14% each from Nigeria, Spain, Trinidad & Tobago and Equatorial Guinea and 3.57% each from Angola, Malaysia and Belgium. LNG was procured by Petronet LNG, Gail, Gujarat State Petroleum Corporation, Reliance Industries, Hazira LNG,Indian Oil Corporation and Torrent Power.

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 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.

Shardul Sharma