Industry News

Initiatives taken to double the capacity of LNG terminals in India in the next six years

India: India has planned to double the LNG import capacity in the next six years to cater the rising demand from refineries, power plants and fertilizer sector. The growing demand for natural gas arises from the expansion in end-user industries which is projected to happen in the near future. The government has planned to set up new facilities and expand existing LNG terminals which would increase the LNG terminal capacity to 47.5 million metric tonnes per annum (mmtpa) by 2022 from 21.3 mmtpa in 2016.

TechSci Research finds out that India is highly dependent on import of natural gas for fulfilling the increasing demand of natural gas. Power sector, fertilizers, refinery and petrochemical industries are the major consumers of natural gas in India. Power sector is the largest natural gas consumer in India, and the sector is expected to continue its dominance with the implementation of new policy initiative i.e. “e-bid RLNG”, which would support the supply of imported RLNG to stranded gas based power plants.

According to released report of TechSci ResearchIndia LNG Market Forecast & Opportunities, 2025”, demand for RLNG in India is forecast to increase at a CAGR of 21.6% during 2016-2025, due to increasing LNG terminal projects and cost-effectiveness of the fuel compared to other alternative fuels. The upcoming LNG projects in the country is a big boost for LNG market in the country because the demand for natural gas can be met by developing associated infrastructure. The development of LNG terminal gains importance from the fact that India is highly dependent on import of LNG via Sea route to meet its requirement for natural gas.

Relevant News