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    India's regas capacity to rise by 12mn mt/yr: report

Summary

India currently has an LNG regasification capacity of about 42.5mn mt/yr of which operable capacity is only approximately 30mn mt/yr.

by: Shardul Sharma

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India's regas capacity to rise by 12mn mt/yr: report

India’s operable regasification capacity is expected to increase by about 12mn metric tons (mt)/year due to the removal of constraints at existing LNG terminals, Motilal Oswal, a Mumbai-based brokerage, said on September 8 in a report.

India has an LNG regasification capacity of about 42.5mn mt/yr at present of which operable capacity is only approximately 30mn mt/yr. Motilal said that nearly 24mn mt/yr of capacity addition is also underway at Dahej in west India, and the greenfield terminals at Chhara, Jafrabad, Dhamra, and Jaigarh over the next few years.

The brokerage said that the KG basin offshore India’s east coast is expected to result in 45mn m3/day of incremental domestic gas, which is approximately 47% of the domestic gas consumption. Reliance Industries (RIL) and BP in the past few months have operationalised major projects in the KG basin. Last month, Reliance said the first gas from the MJ field in the KG basin is expected during the October-December quarter of 2022. MJ field is the last of the three projects RIL and UK major BP are developing in the KG basin.

RIL and BP are developing three deepwater gas projects at KG D6 – R Cluster, Satellites Cluster and MJ – which together are expected to meet about 15% of India’s gas demand by 2023. The R Cluster came online late last year while the Satellite Cluster started production in April this year.

With the completion of major pipelines like Jagdishpur-Haldia, Mehsana-Bhatinda, Kochi-Bangalore, and the upcoming northeast gas grid, India’s total trunk pipeline network is expected to grow to about 32,600 km from 17,126 km, increasing the reach of gas to a larger number of consumers, it said.

The blanket ban on coal gasifiers had resulted in a doubling of gas consumption in Morbi, a major industrial hub in west India, in 2019.

“With the easing of the COVID-related lockdowns, stricter actions may be in store for these polluting clusters, thereby encouraging adoption of natural gas,” Motilal said.