India continues to grow as an LNG customer

India's state-owned Hindustan Petroleum Corporation Limited (HPCL) aims to bring its new LNG import terminal, India's sixth, into operation between December and January and is holding talks with potential long-term LNG suppliers, they said. sources told Reuters on Friday.

HPCL, a subsidiary of Oil and Natural Gas Corporation (ONGC), has built an LNG import terminal in Chhara in the state of Gujarat on the west coast of India. The terminal is designed for a regasification capacity of 5 million metric tonnes per annum (mmtpa), with an option to expand capacity to 10 mmtpa.-

HPCL is now looking for a cargo to commission the new plant in December or January, after it was unable to do so in April due to bad weather. According to Reuters sources, the company wants to take advantage of the three-month window of good weather after the end of the monsoon season. This window begins in November.

Indian liquefied gas terminal

HPCL has also held talks with potential suppliers and has seen "a good response" to an expression of interest it issued seeking a long-term 15-year LNG supply, one of Reuters' sources said.
India's state-owned company wants to buy one LNG cargo per month starting in late 2026 or early 2027.

India intends to increase LNG imports and the use of natural gas as a cleaner fuel than coal and necessary in many industrial processes.

For Indian businesses, securing LNG supplies is critical, as natural gas consumption in industrial activities is set to increase. India's expanding industry and increased oil refining to meet increased fuel demand are set to triple the country's natural gas consumption by 2050, the U.S. Energy Information Administration (EIA) said earlier this year.

According to EIA forecasts, India's gas demand – supported by oil refining and other industrial production – is expected to grow at an annual rate of 4.4% by 2050, more than double the annual growth rate 2.0% of gas consumption in China, the fastest growing country.

This makes India one of the most attractive countries for countries and companies that produce and export LNG, and for companies, many of which are Japanese, that broker their transactions.

The article India continues to grow as an LNG customer comes from Economic Scenarios .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/lindia-continua-a-crescere-come-cliente-di-gnl/ on Mon, 21 Oct 2024 09:00:46 +0000.