Page 14 - GLNG Week 12 2023

GLNG ASIA GLNG

Shell eyes LNG collaboration with

India’s GAIL

INDIA SHELL has teamed up with Indian gas company this goal will be reached given that the coun-
GAIL on joint opportunities across the energy try’s LNG imports slumped last year as a result
Indian gas consumption value chain, including expanded LNG imports of soaring international gas prices, which made
is set to expand fivefold into the country. the fuel uncompetitive versus dirtier equivalents
by the end of the GAIL is a significant player in India’s expand- for power generation such as coal.
decade. ing LNG market, with a portfolio of short-term Indian gas demand came to close to 174mn
and long-term supply deals with international cubic metres per day at the end of last year.
players and traders, and it also has interests in India is currently the world’s fourth-biggest
domestic regasification terminals. LNG importer, with six regasification terminals
In a statement on March 17, GAIL said it had with a combined nameplate capacity of 42.5mn
signed a memorandum of understanding (MoU) tonnes per year, and capacity is due to expand
with Shell Energy India “to explore prospects in to 70mn tpy by 2030 if all planned projects are
import and handling of different hydrocarbons realised.
which are important chemical and petrochemi- The share of LNG in the country’s gas mix
cal precursors, LNG for road transport, regasifi- is also set to increase as domestic production
cation of imported LNG [and] renewables.” fails to keep up with demand, from the current
Furthermore, the deal is aimed at exploring 50% to 70% over the next decade. But a lot will
“opportunities for infrastructure development depend on the outlook for global gas prices. If
for ethane sourcing,” GAIL said. the international market remains tight, this will
Indian gas consumption is set to expand likely mean New Delhi keeping more coal-fired
fivefold by the end of the decade, according to power generation online for longer as a provider
government targets. But it is unclear whether of baseload capacity. ™

P14 www. NEWSBASE .com Week 12 24•March•2023