Livemint: The outlook for LNG Indian imports

Liquefied natural gas (LNG) imports to India fell by about 18% in February on a month-on-month basis. According to data from the Petroleum Planning and Analysis cell, LNG imports in February stood at 0.701 million metric tonnes (mmt), or 34.05 million metric standard cu. metre per day (mmscmd). The same measure for January stood at 0.941 mmt, or 41.28 mmscmd. These figures do not include Reliance Industries Ltd’s LNG imports. In fact, LNG imports are 32% down from the high seen last October.

Why is that happening despite lower spot LNG prices?

Simply put, demand has been terribly weak.

One reason for the weak demand is reduced competitiveness, compared with liquid fuels (such as naphtha), thanks to sharp price declines. Moreover, Nomura Research analysts point out that the inventory levels have been high in the recent past. Weak LNG demand has meant that Indian gas firms could not reap the benefits of lower LNG prices in the December quarter.  MORE