India’s gas consumption is on the rise as global prices have eased, according to A.K. Singh, the CEO of Petronet LNG, the country’s leading gas importer.
On Monday, Singh highlighted the positive indication of increased utilization rates at gas import terminals, specifically referring to Petronet’s largest liquefied natural gas (LNG) import terminal located in Dahej, western India.
With a capacity to import 17.5 million metric tonnes per year (tpy) of LNG, the Dahej terminal is presently operating at 95% capacity, an improvement from 85% compared to the previous year.
The recent decline in gas prices, attributed to the stockpiling efforts by European nations, is bolstering gas consumption in the price-sensitive Indian market. Singh expressed his optimism that gas prices would remain stable throughout the year, provided that the European winter is not excessively severe.
At present, the prices of spot and long-term LNG contracts are nearly identical, ranging between $11-12 per million British thermal units (mmBtu). Singh emphasized that when prices hover within this range, gas becomes a competitive option against alternative fuels.
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