Liquefied Natural Gas Ltd Signs 20-year Agreement to Supply LNG to India

Australia-Listed Liquid Natural Gas Ltd agrees to supply LNG to India for 20 years from its planned Magnolia LNG project in the US

India: LNG ltd signs an agreement with Vessel Gasification Solutions, Inc (VGS) to supply 4 million tons of LNG from its Lake Charles, Louisiana, project for 20 years. This agreement was signed for a 20-year Free-On-Board (FOB) Sale and Purchase Agreement (SPA). VGS, an Indo-American, is constructing a floating LNG import and regasification terminal at offshore of Kakinada, Andhra Pradesh. Magnolia LNG (MLNG) turns out to be an exporter of 8 million tonne or more of LNG per annum in Lake Charles, Louisiana, USA.

TechSci Research depicts that increasing focus on development of adequate support infrastructure in various developing as well as developed economies is expected to boost LNG demand in the coming years. On the other hand, inadequate pipeline infrastructure is augmenting demand for small scale LNG projects to supply natural gas to key consumers in remote areas, especially in power and industrial sectors. Increasing urbanization, growing industrialization and rising number of projects related to power, city gas distribution, petrochemical, etc., are expected to positively influence global LNG market during 2016 - 2025.

According to latest report by TechSci Research, “Global LNG Market Demand & Supply Analysis, By Region (Asia-Pacific, Europe, Middle East & Africa, South America and North America), By Country, By LNG Terminal, Competition Forecast and Opportunities, 2011-2025”, global LNG supply market is forecast to exhibit a CAGR of over 5% during 2016-2025, on account of rising demand for cleaner fuels; oversupply of LNG due to liquefaction capacity additions in Australia, US and Papua New Guinea; and declining prices of LNG over the last few years. In 2015, global LNG export market was dominated by Qatar and Australia, due to huge natural gas reserves and large liquefication capacities in these countries. Increase in spot market purchase is expected to keep LNG prices under check in Asia-Pacific and Europe.