India Cuts LNG Imports as Different Fuels Turn out to be Extra Engaging

Last updated: 2025/04/24 at 9:10 AM

Editorial Team 4 weeks ago

Indian power importers are switching from expensive liquefied pure fuel to cheaper oil merchandise, a transfer that can assist ease tight international provides of the super-chilled gas.

Consumers together with Gail India Ltd. and Indian Oil Corp. canceled LNG buy tenders attributable to excessive costs, based on folks with data of the matter who didn’t want to be named as a result of sensitivity of the commerce. India’s LNG imports this month are estimated to common 1.9 million tons, down 5 p.c from the identical month final yr and the bottom month-to-month quantity since December 2023, based on information analytics agency Kpler.

Costs of LNG have been elevated attributable to a collection of latest outages at export crops in Malaysia to Australia. That’s regardless of fears that the worldwide commerce battle will lower fuel demand. Any discount in Indian purchases will assist to unlock provide for rival patrons in Asia and Europe.

- Advertisement -

Spot costs have been buying and selling between $11 to $12 per million British thermal items over the previous few weeks, whereas naphtha charges in India are nearer to $8 to $9 per million Btu due to a hunch in crude.

That’s pushing refiners, which account for 12 p.c of India’s LNG consumption, to change to naphtha, which is at the moment available attributable to shutdowns at petrochemical crops like Haldia Petrochemicals and Gail’s Uttar Pradesh facility, the folks mentioned.

Industries corresponding to ceramic tile-makers have additionally shifted to cheaper propane, whereas native, inexpensive fuel is on the market available on the market attributable to a shutdown at Reliance Industries Ltd.’s Jamnagar refinery and upkeep at some fertilizer crops, they mentioned.

Nonetheless, India’s LNG demand may immediately get well if hotter summer time climate from subsequent month prompts the federal government to mandate increased gas-fired energy technology, the folks added. A lot of India’s fuel energy capability is at the moment offline attributable to excessive LNG costs.

Generated by readers, the feedback included herein don’t replicate the views and opinions of Rigzone. All feedback are topic to editorial assessment. Off-topic, inappropriate or insulting feedback will likely be eliminated.