India’s import of liquefied pure gasoline (LNG) recorded a drop of 13.2% year-on-year (y-o-y) to 1.9 million tonnes (MT), or 2,517.5 million commonplace cubic meter (mscm) in September, in keeping with a latest word printed by Credit score Suisse. With this, LNG import in April-September stood at 11.8 MT, marginally decrease than 11.9 MT recorded within the corresponding quarter a yr in the past.
Import volumes fell with world spot LNG costs climbing to report highs amid low shares, excessive demand and restricted provide of gasoline. Home pure gasoline consumption had elevated 10.1% y-o-y to 26,660 mscm within the April-August interval and demand figures for September aren’t obtainable but.
Within the April-August interval, LNG import volumes had inched up 0.7% on a y-o-y foundation to 13,033 mscm. Nonetheless, the worth of imports in the identical timeframe had elevated 68% y-o-y to $4.2 billion. Asian spot LNG charges had climbed from $6.9/million British thermal unit (mbtu) originally of the fiscal to $17.7/mbtu at August finish. By September finish, it had even crossed $25/mbtu. In April-August, 2019 LNG import was 13,618 mscm and the worth of the import was $3.9 billion. Complete home consumption within the corresponding interval in FY20 was 26,666 mscm.
The drop in LNG imports coincides with gasoline manufacturing ramping up on the tough fields of Reliance Industries and BP’s ultra-deep-water KG-D6 Block within the Krishna Godavari basin and ONGC’s U1B deep-water gasoline positioned within the KG-DWN 98/2 block on the east coast. Although the ceiling worth for gasoline to be produced from these tough fields has been raised by 69% to $6.13/mBtu, it stays a lot decrease than imported LNG charges.
Import dependency of pure gasoline, because of rising LNG costs and better home manufacturing, has dropped from 54% in April-August, 2020 to 49% within the corresponding quarter this yr.
Low LNG import “will proceed to stay an overhang on Dahej’s utilization till gasoline demand progress exceeds the brand new home gasoline provide from Reliance and ONGC (which might take one other 2-3 years),” analysts at Credit score Suisse famous. The whole capability of operational LNG import terminals is round 40 MT every year (MTPA). Petronet LNG’s Dahej terminal, the biggest amongst them with 17.5 MTPA capability, was working at 93% utilisation in September, towards the 109% recorded within the corresponding month within the earlier yr.