India in Global Hunt for LNG
India is scouting for new liquefied natural gas (LNG) contracts globally as part of a push to secure cheap supplies for its under-utilized gas-fired power plants, reports Bloomberg.
Australia, Qatar and Iran could all act as potential suppliers of long-term LNG contracts, power minister Piyush Goyal said in Sydney.
The global search for LNG comes as India’s gas-fired plants, which can generate nearly 25 gigawatts of power, run at less than a quarter of their capacity because of a shortage of the fuel at affordable prices.
“I think gas needs to be between $5 and $5.50 landed at my power plant. That is what I’m looking for in the medium- to long-term,” Goyal said. “Otherwise I won’t be able to start those gas plants.”
In fact, a boom in LNG demand and projects is taking shape in India. Demand for natural gas, mainly from new power generation projects, fertilizer plants, and industrial users, is projected to soar in the country with the second-largest population on earth.
In 2015 the country imported 15 million tons of LNG, but some forecasters predict it will import nearly 50 million by 2030.
NTPC Ltd., India’s biggest power producer, is said to be seeking to terminate a long-term supply contract for LNG because the fuel is too expensive to be used in power generation.
Gail India has issued a tender to buy three liquefied natural gas (LNG) cargoes for delivery across December and January. The company, which launched the tender on Thursday, is seeking one cargo for December and two in January, says a report in Reuters.
Indian Oil, the state-run refining company, has announced that it expects to earn 15 percent of its total revenue from gas-related projects by 2021.
Given the scope of India's expected demand growth and the likely long lead times and other problems associated with various pipeline options, India has settled on a comprehensive program of establishing LNG terminals around the country and expanding its domestic gas pipeline infrastructure to deliver that regasified LNG to market, reports OGJ.
