Gujarat State Petroleum Corporation and Gazprom agrees on purchase of four LNG cargoes from Gazprom

India: In a major development in Oil and Gas sector Gujrat State Petroleum Corporation (GSPC) has decided to buy four LNG cargoes from Gazprom following a recent tender. The tender attracted lot of interest from trade houses and suppliers where Gazprom emerged as the winner for the supply of vessels. The cargoes will be sold between June 2016 and March 2017 as per the agreement between the companies.

TechSci Research finds out that the low domestic production of natural gas coupled with increasing demand from the key end users has widened the demand supply gap in India. The demand for cleaner fuel in India is increasing due to environmental concerns as natural gas is clean source of energy its demand is poised to increase as well. To address the growing concern, the country is developing LNG infrastructure to increase the imports. The LNG cargoes will be used to import natural gas in India which will be evacuated at the LNG terminals.

According to released report of TechSci Research “India LNG Market Forecast & Opportunities, 2025”, the natural market in India is projected to reach 598 Million Metric Standard Cubic Meter per Day MMSCMD by 2025. The increase in demand will come from the end-users of natural gas such as power sector, city gas distribution, etc. The increase in number of cargoes is necessary to expand the capacity of gas imports in the country because the imports will continue to cater the need of natural gas majorly. The expansion in LNG fleet is part of overall development in the natural gas trade between countries.