India scans the world for LNG as it battles China and Europe for supplies - Upstream Online
India scans the world for LNG as it battles China and Europe for supplies | Upstream Online
Indian state-owned liquefied natural gas players are stepping up engagement with operators from the US, Middle East and Russia, aiming to secure long-term LNG contracts as the volatile spot market poses challenges for the nation’s gas sector.
Analysts and people close to the talks described the stakes for India and gave Upstream details on the nation’s efforts to procure more LNG through longer-term contracts.
India is the world’s fourth-largest importer of LNG. Prime Minister Narendra Modi has said the nation’s gas consumption is set to jump by up to 500% in the coming years, along with a sizeable increase in gas infrastructure and LNG import capacity.
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.