Reuters, NEW DELHI, May 3 - Due to a drop in LNG prices globally, India's biggest gas importer Petronet LNG (PLNG.NS) anticipates a "huge jump" in local gas demand for at least six months, according to its chief executive A. K. Singh.
Following a drop in global LNG prices to around $11 per million British thermal units in Asian markets, Indian gas demand is already showing signs of recovery.
A.K Singh informed reporters on the company's quarterly earnings call that Petronet ran its 17.5 million tonnes per year Dahej LNG terminal on the west coast at 97% efficiency in April as opposed to 77% in the three months before to March.
Also, A.K Singh noted that Indian petrol demand was price-sensitive and predicted a significant increase if prices stabilised. India plans to increase the proportion of petrol in its energy mix from 6.2% to 15% by 2030.
If not for unusual circumstances like the COVID outbreak and Russia's conflict in Ukraine, Singh claimed that Indian LNG imports may have reached 30 million tonnes annually.
According to
export import data, India purchased 20.1 million tonnes of LNG in the fiscal year that ended in March 2023, down from 25.6 million tonnes in 2019/20.
With Mangalore Refinery and Petrochemicals Ltd (MRPL.NS) and a petrochemical plant potentially switching from liquid fuels to petrol due to the cheaper, cleaner fuel, Singh anticipates capacity utilisation at its 5 million tonne per year Kochi terminal in southern India to reach over 20%. According to him, Petronet is expanding its Dahej plant by two LNG storage tanks and its Kochi facility by one.
