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.