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India’s LNG imports recover in March |
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LNG imports from India’s four major companies were up by 7% for the April 2014-March 2015 fiscal year. The total amount of LNG imported came to 11.46 mt, up from 10.76 mt in 2013-2014, according to the Ministry of Petroleum and Natural Gas’s Petroleum Planning and Analysis Cell (PPAC).
Data published by the PPAC is compiled from four of India’s five LNG-importing companies, but excludes Reliance, meaning total imports for the year will be higher.
India’s total LNG imports in January were down by 6% on an annual basis. This was the first time total monthly imports had slipped below 1 mt for 11 months.
India imported 13.94 mt of LNG in 2014, an increase of 6% – or 900,000 tons – from 2013, according to Department of Commerce data calculated for the calendar year.
The majority of India’s LNG comes from Qatar under a long-term contract for 7.5 mtpa between Petronet and RasGas. India is in negotiations to reduce the amount of LNG received under this contract by at least 10%, as domestic demand for gas has fallen.
Gas sales fell by 25% in February to 2.8 bcm, and are down by 10% on last quarter, while the amount of LNG regasified fell by 22%.
India paid an average of $13.71/MMBtu for Qatari LNG between April 2014 and January 2015. Asian spot prices have fallen below this level, making it more desirable for companies to purchase from the spot market.
Although LNG spot prices fell between November 2014 and March 2015, they were still above the $5.05/MMBtu domestic gas price. The price for April to September is set at $4.66/MMBtu, which is intended to increase demand for gas – particularly as a fuel for power generation.
Low demand, coupled with ongoing delays on pipeline construction at the Kochi LNG plant, led the terminal to reload its first cargo this year. The delivery arrived at South Korea’s Tongyeong LNG terminal in February.
Source : hellenicshippingnews.com
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