Page 8 - GLNG Week 49

GLNG ASIA GLNG
India continues campaign to extend gas’ reach
POLICY
INDIA’S efforts to expand the use of natural gas within the country’s primary energy mix con- tinued this week with the opening of the coun- try’s first liquefied natural gas (LNG) dispensing station.
INOX India said this week that it had com- missioned the facility at Petronet LNG’s import terminal in Dahej, which is in Gujarat State. The new unit will dispense fuel to buses that will be responsible for transporting Petronet LNG’s staff between the terminal and the town of Bharuch.
Commenting on the station’s launch, INOX India’s CEO said the company aimed to com- mission another 25 LNG and liquefied-to-com- pressed natural gas (LCNG) stations over the next two years.
The station’s commissioning comes as India seeks to increase its use of gas to help reduce its reliance on dirtier fuels such as crude oil and coal. The country has set a target of gas account- ing for 15% of its primary energy mix by 2030, with Indian Minister of Petroleum and Natural Gas Dharmendra Pradhan noting last week that consumption would have to rise from 166mn cubic feet (4.7mn cubic metres) per day at pres- ent to 600 mmcf (16.99 mcm) per day by 2030 to achieve that target.
“Twenty five-thirty years ago crude oil was the only priority of our exploration activities, but today the dynamics have changed. Gas has now become an important and essential part of our energy basket and is driving our energy transition,”hesaid.“Domesticproductionofgas in India is set to grow. We are investing $60bn in gas-based infrastructure. The speed and scale at which [the] city gas distribution ecosystem
in the country has grown in recent times is remarkable.”
The problem for India, however, is that pro- duction is actually in decline. Gas output in the first half of financial year 2019-2020 slipped by 1.5% on the year to 16.01 bcm. The decline in November, however, sped up, reaching 6.2%. This has prompted gas importers to expand capacity and go in search of new supply deals.
Petronet LNG, the country’s leading importer of gas, has approached new suppliers over poten- tial deals, the company’s head of finance, Vinod Kumar Mishra, revealed last week.
Reuters quoted Mishra as saying on Decem-
ber 5 that Petronet had been in talks with LNG
suppliers including the US’ NextDecade LNG
and that the importer was in the process of
appointing a consultant to advise on the deals.
Petronet is also understood to be in talks with importer of gas, Tellurian and Qatar Gas to buy stakes in their
LNG assets.
To facilitate this uptick in imports the coun-
try intends to increase its import capacity
from 38.8mn tonnes per year to 52.5mn tpy
with the next few years. Moreover, an addi-
tional 14,700km of gas pipeline is in develop- deals. ment, almost doubling the existing network of
16,800km.
The country’s LNG imports rose by 14% year on year in 2018 to 22mn tpy, accounting for around 56% of total demand. Industry con- sultant Wood Mackenzie has forecast that this figure will climb to 40mn tpy by 2030 and then 70mntpyin2040.TheconsultancyexpectsIndia to overtake South Korea as the third-largest Asian market for LNG by 2030 and rival Japan by 2040.™
Petronet LNG, the country’s leading
has approached new suppliers over potential
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w w w . N E W S B A S E . c o m Week 49 12•December•2019