ONGC, IOC & BPCL have booked 60% of the Capacity of Swan Energy’s Upcoming Floating LNG Terminal

The upcoming floating LNG terminal at Gujarat coast, would surge the demand for LNG in western & northern region of India.

India: State-owned Oil and Natural Gas Corporation, Indian Oil Corporation Limited and Bharat Petroleum Corporation Limited have booked 60% of Swan Energy’s upcoming floating LNG terminal capacity at Gujarat coast. Swan Energy is building the LNG project in joint venture with Exmar of Belgium. The Indian national oil companies have agreed to take of one million tons per annum capacity each out of five million tons a year floating LNG terminal planned at Jafrabad port in Gujarat. Swan Energy is targeting for commissioning of the one jetty-moored FSRU at Jafrabad by 2019.

TechSci Research depicts that India is aggressively expanding its LNG terminal capacity 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 TechSci Research report, “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.