Fertiliser sector key support for Indian LNG demand [Gas in Transition]

Fertiliser sector key support for Indian LNG demand [Gas in Transition]

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Natural Gas News
Fertiliser sector key support for Indian LNG demand [Gas in Transition]

Summary

Falling LNG prices and burgeoning electricity demand could see India reprioritise LNG imports for power generation. by: Martin Daniel

Indian LNG demand is unusual in terms of the proportion consumed by the fertiliser sector, with a relatively small amount now used to generate electricity (see figure 1). But with the government committed to increasing gas’s share of total primary energy supply from 6.3% to 15% by 2030, and with constraints in the supply of most other power station fuels, that could change. Indian LNG imports increased steadily in the 2010s. Arrivals more than doubled from 18bn m3 in 2013 to 36.6bn m3 in 2020, according to Energy Institute data. However, imports dropped to 28.4bn m3 in 2022, owing to the impact of COVID-19 and the soaring price of LNG. As the economy has recovered and global LNG prices fallen, import levels have revived, particularly in the second half of 2023. Imports in 2023 totalled 29.34bn m3, according to India’s Petroleum Planning & Analysis Cell (PPAC). PPAC also reported ...