Tender floated by Gas Authority of India Ltd (GAIL) to buy six LNG cargoes in 2017

India: The tender for purchase of six LNG cargoes in 2017 has been floated by GAIL on July 09, 2016. The deliveries have to be made on Dahej and Dabhol import terminals in months of January, March, May, July, September and October. The tender will be valid till 25 July, 2017 and the purchase of the LNG will be linked to the Brent crude oil prices. It is one of the strategical decision made by the company to fulfill the domestic natural gas requirements as cost of importing LNG has dropped sharply.  

TechSci Research depicts that India is aggressively expanding its LNG terminal capacities to cater incremental demand of natural gas. Government has also 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 and fertilizer industry.

According to the recent report published by 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 the major factors anticipated to positively influence the country’s LNG market scenario over the next ten years.