Limited Heating Demand Due to Warm Weather Has Resulted in Falling Natural Gas Price

India: The natural gas price for November 2016 decline by 9.3 cents, or 2.9%, at USD 3.17 a million British thermal units on the New York Mercantile Exchange due to warmer weather condition. The climatic conditions have the big influence of the natural gas prices as many residential sector use it for winter heat purposes. Weather in many countries such as in North and South America is too temperate to boost heating demand. Thereby result in increase of export for liquefied natural gas from the United States to Asia Pacific region including India.

Techsci Research depicts that widening demand and supply gap in India has resulted in increasing natural gas imports in the form of LNG. Thus, natural gas imports are expected to rise significantly over the next five years. Also, the falling natural gas prices is expected to drive the demand for natural gas in India. Widening demand and supply gap has resulted in increasing natural gas imports in the form of LNG (Liquefied Natural Gas). The natural gas imports are expected to rise significantly over the next five years.

According to released report of TechSci Research “Indian LNG Market Forecast and 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. 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 (urea plant), power plants and industrial sector.