The ‘LNG Business and Market Outlook in India – 2019’ report has been published by Research and Markets.
As India is being pressured to reduce carbon emission levels, the country announced it will double the share of natural gas in the energy mix to 15% by 2022 which will cause a hike in imports and huge capital investment inflow for the construction of LNG terminals in the coming years.
The energy transformation is the key to diversification in energy supply, affordability and reliable energy access and, most importantly, energy security. India is on the path to energy transformation that is likely to solve the issues of accessibility to energy and related environmental issues. With this mindset, India has planned to provide the impetus to improve the consumption of natural gas.
India is already experiencing growing consumption of crude oil and coal, and their associated pollution levels. As a result, it was proposed that a balance be reached in the energy consumption pattern by doubling of the percentage of natural gas to 15% in the energy mix by 2022. Historically, India's natural gas consumption pattern has been on an upward trend for the last 6-7 years. With limited natural gas reserves in India, the imports of natural gas which stood at 12.89 billion m3 in fiscal year 2011 has increased by more than 200% to 26.33 billion m3 in fiscal year 2018 despite there being fewer LNG terminals.
This report reflects a convincingly positive outlook for natural gas utilisation in the country and for future growth as a gas economy between now and 2022. Local distribution companies and interstate and intrastate pipelines appear to be more confident in future growth, but oil and gas producers are not far behind. But what is feeding the optimism in the industry participants? India, in particular, is poised to capitalise on low oil prices to embark on new projects. Petrochemical sector developers are assessing the feasibility of new fertilizer and sulfur recovery plants. These downstream projects could result in high returns when the market rebounds, making them easily bankable to investors.
Read the article online at: https://www.tanksterminals.com/terminals/05042019/indian-lng-import-terminal-capacity-to-double-by-2022-according-to-research-and-markets/