Petronet LNG purchased 26% stake in LNG Ship in Australia

India: Petronet LNG, India’s LNG importer company has purchased 26% of stake of about USD12.06 million in a LNG ships which would carry gas to India under contract from the Gorgon project, Australia. Petronet LNG would start receiving the LNG from the Gorgon project by January 2017. Moreover, Petronet’s Dahej LNG terminal capacity is partially expanded from 10 MMTPA to 15 MMTPA and it would likely be completed by October 2016, which would reduce the demand supply gap in the country.

TechSci Research depicts that with boosting of LNG supply in the country, would help to meet the demand of natural gas for various end-users such as power, industrial, fertilizer and city gas distribution. Moreover, increasing focus on expansion of gas pipeline infrastructure, rising demand for natural gas from power and industrial sectors coupled with favorable government policies is making LNG a commercially viable fuel for an increasing number of end users industries in India. As a result, LNG demand is forecast to witness robust growth over the next 5-10 years.

According to a recent released report of TechSci Research, “India LNG Market Forecast and Opportunities, 2025”, Upcoming LNG terminal projects, surging demand for natural gas in India and cost-effectiveness of LNG as compared to other alternative fuels are among the major factors anticipated to positively influence the country’s LNG market scenario over the next ten years. Government has also announced revised guidelines in “Gas Allocation Policy” to prioritize natural gas supply to various end-user segments that include City Gas Distribution for households and transport sector, fertilizers sectors (urea plant), power plants and industrial sector.