India Gas Newsletter (IGN)


GAIL Hires a New Build LNG Carrier for 14 Years to Ship Cargo from US

(By Economic Times, 17 May 2024)

GAIL (India) has hired a new LNG carrier for 14 years, beginning early 2025, from the New York Stock Exchange-listed Cool Company Ltd, for an undisclosed daily rate. The time charter contract is intended to secure the long-term supply of LNG into the fast-growing Indian market, with GAIL having the option to extend the charter period by two additional years beyond the firm 14-year period.

LNG Futures Trading Surges in April as India Prepares for Summer Demand Surge

(By Print, 07 May 2024)

According to data from March 2024, India’s total LNG imports, including long-term and spot purchases, stood at 1.9 MMT, amounting to USD 1113 million. For the fiscal year 2023-24, India’s cumulative LNG imports reached 23.3 MMT, valued at USD 13266 million. Forecasts suggest a further 7-8 % increase in LNG imports in 2024, fuelled by burgeoning demand and ongoing infrastructure development initiatives.

LNG Spot Prices Have Fallen. What Does it Mean for India?

(By Money control, 03 May 2024)

Sectors including power, fertilisers and industries have ramped up intake of the fuel as prices hit three-year low due to ample supply in the market. On account of low gas prices, the power ministry said in April that it is considering to impose a mandate on generating companies to mandatorily operate their gas-based power plants to meet the country’s increasing power demand this summer.

Petrobangla Nears Pipeline LNG import Deal with Indian H-Energy

(By The Business Standard, 27 April 2024)

After four years of negotiation, Petrobangla, the oil, gas and mineral corporation of Bangladesh, is close to signing agreements on import of regasified LNG from Mumbai-based H-Energy Private Limited through a cross-border natural gas pipeline. Discussions are underway for importing 0.8 to 1 million tonnes per annum LNG from H-Energy.

GAIL Plans to Expand LNG Trading Business to Global Markets

(By Economic Times, 25 April 2024)

“We plan to ramp up our LNG trading business. We began with sourcing LNG cargoes for ourselves and have expanded to sourcing cargoes for some other Indian companies. Now we plan to serve non-Indian customers as well, with an aim to become a global LNG trader,” GAIL chairman and managing director Sandeep Kumar Gupta told ET.

IGX Launches Small-Scale LNG Contracts, Expanding Gas Availability Beyond National Grid

(By Zee Business, 24 April 2024)

IGX has introduced small-scale LNG contracts to cater to the increasing gas demand from industries and City Gas Distribution (CGD) companies lacking access to pipeline networks. These contracts offer flexible procurement options, allowing buyers to obtain liquefied gas through LNG tankers under daily, fortnightly, and monthly agreements.

Fertilisers, Power & Piped Gas Distribution Push India’s LNG Imports By 17.5% In FY24

(By KNN India, 22 April 2024)

India’s import of LNG surged by 17.5% in the financial year 2023-24 to reach 30,917 million standard cubic meters (mmscm), driven by increased consumption across sectors such as fertilisers, power, and city gas distribution. Fertiliser sector accounted for 32% of the total consumption, followed by city gas distribution sector at 19 % and the power sector at 12%.

After GSPL, Tariff Cuts for GAIL Also Can’t be Ruled Out. Gajendra Singh of PNGRB Explains Why

(By Economic Times, 22 April 2024)

Gajendra Singh, Member, PNGRB (Petroleum & Natural Gas Regulatory Board), says PNGRB has come out with pricing revision because the companies owing to volume growth, had made more than 12% returns. Since this is a regulated entity, PNGRB is only ensuring that whatever the fine print was, if they are making returns of more than 12%, that really needs to be capped.


Outlook: Global LNG Trade Amid Market Uncertainties

(By Offshore Technology, 17 May 2024)

The global LNG industry has experienced significant shifts in demand and supply dynamics due to geopolitical tensions. While the LNG market has gradually rebalanced in 2023, geopolitical factors continue to pose challenges for the industry in 2024. As the industry navigates through these, the focus remains on LNG investments, contracting activities, and the evolving energy transition landscape.

What EU sanctions on Russian LNG Would Mean for Global Gas?

(By The Mint, 14 May 2024)

Europe and allies plan to ban use of EU ports for re-exporting Russian LNG, potentially angering key buyers like China and India. The move aims to cut off Novatek’s access to EU stopovers, complicating shipping logistics and raising costs for Russian LNG exports to Asia. If alternative shipping arrangements fail, Russian LNG exports may be reduced.

Warm Weather Stoking Increased Demand Considerations – Rystad

(By Ajot, 02 May 2024)

Following a period of uncertainty in global gas and LNG markets, prices have appeared to reflect a return to fundamentals. Relatively weak demand and healthy storage in Europe and East Asia have allowed prices to soften. Warmer weather is being forecast across Asia, and market players are observing whether an increased power demand for cooling will provoke a demand for spot LNG.

LNG Contract Prices Set to Decline Amid Oversupply and Overinvestment: S&P Global

(By Energy World, 29 April 2024)

The long-term pricing for LNG contracts is likely to experience a downward trend due to an oversupply in the market and a prevailing over-investment cycle, according to S&P Global. By 2030, the LNG supply will see an addition of almost 200 million metric tons from plants currently under construction, marking a growth of nearly 50%.

Global LNG Outlook 2024-28: IEEFA  

(By IEEFA, 25 April 2024)

Lackluster demand growth combined with a massive wave of new export capacity is poised to send global LNG markets into oversupply within two years. Meanwhile, in emerging Asian markets, structural LNG demand growth faces economic, political, financial, and logistical challenges that an oversupplied environment may not fully resolve.


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