Industry News

Dahej terminal of Petronet LNG had maximum capacity utilization during FY2016

India:  According to the Petronet LNG, the Dahej terminal witnessed maximum capacity utilization during the fourth quarter of FY2016. The company has started importing the spot volume along with contracted volume to maintain the full utilization of the Dahej terminal. Petronet LNG is jointly promoted by GAIL, Oil and Natural Gas Corp, Indian Oil Corp and Bharat Petroleum Corp. It operates a 10-million-tonne-a-year LNG import terminal at Dahej in Gujarat and a 5-million-tonne-a-year terminal at Kochi in Kerala. Capacity utilization of Kochi terminal has improved marginally as Fertilizers and Chemicals Travancore Limited (FACT), Kochi has started to purchase LNG for its urea unit.        

TechSci Research depicts that Government has 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, power plants and industrial sector. In addition, emergence of SSLNG market is opening up new opportunities for the industry. Other policies like E-bid RLNG are also expected to play a crucial role for supplying imported RLNG to power plants over the course of next ten years. 

According to the released report of TechSci Research, India LNG Market Forecast & Opportunities, 2025”, the total opportunity for RLNG in India is projected to increase from an estimated 52.34 mmscmd in 2016 to 305.10 mmscmd by 2025, registering a CAGR of more than 21% during 2016 – 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.       

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