India's LNG Imports in May Drop 10%

LNG imports into India in May fell almost 10% on year to 1.9bn m³, data published by the Indian oil ministry's Petroleum Planning and Analysis Cell showed June 20.

India's LNG imports jumped last year. For the 12-month period ended March 31, 2017, India’s LNG imports were up by 15.5% on year at 24.6bn m³. LNG imports during 2016‐17 were the highest during the past four years. 

Qatar is the largest supplier of LNG to India. And, given the backdrop of low global LNG prices, Indian Petronet LNG insisted on renegotiating its long-term contract with Qatar's RasGas. In December 2015, the two parties signed a revised deal. The revised formula bases the price on a three-month average figure of Brent crude oil, replacing a five-year average of a basket of crude imported by Japan.

India has four operating LNG terminals: Dahej, Hazira, Dhabol and Kochi. According to a document released by the oil ministry on June 3, 2016, India’s LNG terminal capacity could more than double by 2022 as existing terminals expand and new ones are commissioned.

Shardul Sharma