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.