Lng Market & Import Outlook in India

2nd September 2016 – Navi Mumbai, India: Market Report on India present the latest report on “LNG Market & Import Outlook in India”, India has recently made reforms in policy by shifting to greater use of gas from its traditional practice of coal and oil based energy sector.

India’s rapidly expanding economy and a growing population has resulted manifold increase in consumption of primary energy resources such as coal, crude oil and natural gas in recent years. Now India is one of the largest energy consumer as well as importer, particularly in case of oil and natural gas. As a part of its policy for sustainable development, India has recently made reforms in policy by shifting to greater use of gas from its traditional practice of coal and oil based energy sector. As of now, natural gas comprises of nearly 10% India’s total primary energy consumption but India aims to enhance the proportion to 25% - similar to global average in next 10 years. But India’s meager domestic production compels it to import about 40% of its domestic gas requirement.

India’s existing natural gas reserves occupy only 0.7% of total global reserves though India’s natural gas consumption has already touched nearly 4% of total global consumption. More than two-thirds of India’s domestic natural gas reserves are in offshore and even the onshore reserves are also heavily concentrated in few states of west and north-eastern parts of the country. Gas production from the offshore reserves is declining fast due to over exploitation throughout the years. Besides, due to lack of proper technology, onshore production is also not growing substantially. That is why India’s domestic production of natural gas fell by nearly 40% in last six years – from FY’11 to FY’16. But at the same time, domestic demand for natural has increased substantially – mainly due to India’s push towards a gas based energy industry. Hence natural gas imports in the form of Liquefied Natural Gas (LNG) surged by more than...