India’s import of liquefied natural gas (LNG) recorded a drop of 40% year-on-year (y-o-y) in May. However, the import volumes inched up 4% from the levels in April. For LNG imports, Petronet LNG’s Dahej and Kochi terminals have been losing market share to Shell’s Hazira and the newly commissioned Mundra terminals over last three months, analysts at Credit Suisse noted.
The Mundra terminal is owned by GSPC LNG, a joint venture by the Gujarat government and Adani Enterprises.
The total capacity of operational LNG import terminals is 41 MT per annum (MTPA). Petronet’s Dahej, the largest among them with 16.3 MTPA capacity, was operating at 55-60% utilisation in May. The 5 MTPA Dabhol terminal, owned by a joint venture of GAIL and NTPC, has been closed from May 26 due to the monsoon season, and this is seen to provide some support to Dahej’s LNG volumes, experts pointed. Though the existing capacity of Dabhol is 5 MPTA, the available capacity is only 1.7 MTPA due to the absence of breakwater facility.
Petronet LNG is a joint venture by Bharat Petroleum Corporation Ltd, GAIL, Indian Oil Corporation Ltd and Oil and Natural Gas Corporation. Import dependency of natural gas has increased to 53% of consumption in FY20 from 47% in FY19. Imports of LNG have increased at a CAGR of 12% during FY16-20, as the government plans to convert India into a ‘gas-based economy’ by 2030. As noted by Care Ratings, LNG imports have increased by more than 17% during FY20 with gas-based power plants, oil refineries and gas marketing companies taking advantage of low spot LNG prices. Value of imports came down by 7.8% in FY20 to $9.5 billion. India mainly sources supplies of LNG from Qatar, UAE, Niger, Angola and the US.