NEW DELHI: After witnessing a minor dip in July for the first time this year, India’s LNG imports have regained their sharp double-digit growth rates. According to data published by oil ministry’s Petroleum Planning and Analysis Cell (PPAC), LNG imports in August were 2.14bn m³, up almost 35% compared with the same month last year. Cumulative imports too remain substantially higher: for the first five months of fiscal year 2016-2017 (April-August), India’s cumulative LNG imports were 10.34bn m³, up almost by 26% year-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 at Dahej and Hazira in Gujarat, Dabhol in Maharashtra, all 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 will likely rise to more than double by 2022 as existing terminals expand capacity and new ones get commissioned.
