According to a recently released report by ResearchAndMarkets.com, the domestic LNG Import Terminal Capacity space is slated to witness plenty of action in the coming years. To meet with its growing energy needs, the country has announced to double the share of natural gas in the energy mix to 15% by 2022 which will witness a hike in imports and huge capital investments inflow for construction of LNG terminals in coming years
Historically, India’s natural gas consumption pattern has been on an upward trend since last 6-7 years. With limited natural gas reserves in India, the imports of natural gas which stood at 12.89 BCM in FY 11 has increased by more than two times to 26.33 BCM in FY 18 despite having less number of LNG terminals.
This report reflects a convincingly positive outlook for natural gas utilization in the country for future growth as gas economy between now and 2022. Interestingly, local distribution companies (LDCs) and interstate and intrastate pipelines appear to be more confident in future growth, but oil and gas producers are surprisingly not far behind. But what’s feeding the optimism in the industry participants were required to be determined which the dossier encompasses beautifully to join all the dots for the stakeholders in the gas business of the country. India, in particular, is poised to capitalize on low oil prices to embark on new projects. Petrochemical sector developers are assessing the feasibility of new fertilizer and sulphur recovery plants.
These downstream projects could result in high returns when the market rebounds, making them easily bankable to investors. The report is packed with in-depth analysis over the utilization of natural gas in India till 2022 and the balance with LNG in terms of industrial demand is also carved out in particular to the consuming sectors. The dossier also encapsulates the CGD network outlook in the country with a focus on pipeline infrastructure to meet the demands of all the sectors like domestic, commercial, industrial and transport sector in the country.
LNG in India
- India may see a 6 times growth in the Indian gas market by 2030 from the current levels, with LNG to be the largest contributor
- As per MoPNG, LNG import terminal capacity to double to 47.5 MTs by 2022
- Use of LNG as a transport fuel is on the priority list of the government and is working in line for setting required infrastructure.
- Petronet is setting up 20 LNG stations at petrol pumps on highways along the west coast that connects Delhi with Thiruvananthapuram covering a total distance of 4500 kms via Mumbai and Bengaluru
- Automotive sector in India foresees a demand of 8-9 MTs of LNG annually by 2022
- India opens biggest city gas licensing round likely to attract investment of INR 70,000 Crore
- Government targeting to raise the share of natural gas in the primary energy basket to 15 percent from current 6 percent, in the next few years