Hazira LNG and Port

The Indian context

By all estimates India has considerable potential for long-term growth in gas consumption.

Compared to the world’s natural gas consumption of 24% in the energy basket, natural gas just accounts for a 9% share of the energy basket.

In India, the growth will come from a combination of more energy consumption in the nation and also an increase in the share of natural gas in India's energy fuel basket. On a per capita basis, energy consumption in India is currently 0.4 tonnes of oil equivalent (toe) of energy as against China's 1.5 toe, and Brazil's 1.3 toe. Indian per capita consumption is expected to triple to 1.22 toe by 2030.

The natural gas supply scenario in India has changed dramatically due to increased availability of domestic gas and the availability of LNG via the regassification terminals at Hazira and Dahej. On the demand front, natural gas has managed to replace costlier liquid fuels such as Naphtha resulting in enormous savings to the economy. This charge was initially led by Regassified LNG (RLNG) and was later joined by rising domestic gas availability.

However, in order for the Natural gas market to reach the next level, a number of preconditions need to be met. . These include significant investment in infrastructure, particularly pipelines and City Gas Distribution networks, development and enforcement of regulatory framework policies and presence of multiple players in upstream, midstream and downstream segments of the industry.

Today, the Indian and Chinese markets offer the maximum potential in terms of growth of energy demand and hence are attractive destinations for LNG import. This is the opportune time for Indian customers to seek LNG supply from the global LNG markets.

© 2010-11 Hazira LNG and Port.

Terms of Use  |  Privacy Policy  |  Sitemap