Government led policy to promote gas based power generation is going to be a big boast for LNG business in India

India: State owned MSTC ltd. Conducted an auction for allocation of re-gasified natural gas for stranded power plants in the country. The auction secured 8 mmscmd of imported gas for major players such as Dabhol, GMR, GVK, Lanco, Gama, etc. and the gas will aid generation of 6.79 billion units of electricity. The auction was conducted under power sector development fund (PSDF) scheme which is aimed at enhancement of power sector in India. 

TechSci Research depicts that the increasing focus on clean power generation in India requires huge amount of natural gas for power sector. The gas based power generation is considered as one of the most efficient mode of power generation with negligible greenhouse gases emissions.

The limited domestic production of natural has led to increased dependency on LNG imports in India which is going to increase in near future. Power sector in India is going to be one of the biggest beneficiary of imported natural gas which will enable the operations of gas based power plants which have come to a standstill due to lack of gas as fuel. 

According to released report of TechSci Research “India LNG Market Forecast and Opportunities, 2025”, the LNG imports will play a crucial role in bridging the demand supply gap of natural gas in India. The increase in demand of natural from the end users such as Power sector, City Gas Distribution, etc. is going to drive the LNG business in India. The high capacity of natural gas imports will be met by development of appropriate infrastructure which includes building of LNG terminals.