(ET)
The import of liquefied natural gas (LNG) increased 6.8 per cent year-on-year in the nine months to December 2019 as local output declined and demand expanded. LNG import expanded to 23.58 billion cubic meters in April-December 2019 when gross production shrank 3.2 per cent and total consumption climbed 3.9 per cent. The share of LNG in total domestic consumption expanded to 51.6 per cent during this period from 47.9 per cent in the year-ago period.
In December, the rise in LNG import was much sharper at 22.8 per cent as local production fell 7.9 per cent and consumption expanded 5.9 per cent. Acollapse in the global LNG market, resulting in spot prices for Indian buyers falling below $4 per million metric British thermal unit (mmBtu), has also led to an increase in gas imports.
Many buyers, locked in long-term contracts where prices are linked to crude oil, are unable to benefit though. India has been seeking to renegotiate long-term LNG purchase contract with its biggest gas supplier, Qatar, to bring down prices so that the fuel becomes more affordable for Indian consumers. Qatar has rejected the demand but Indian officials feel the doors are not yet fully shut.
