(T.E.T)
Global gas crunch is hurting Indian LNG import terminals as sky-high spot prices have curbed imports, which can push into doubt the country’s plans to aggressively add capacity. Shell’s 5.2 million tonnes a year (mt/y) LNG terminal at Hazira, the country’s second-largest, used only 63% of its capacity this financial year from April through December as against 89% in the same period last year. Capacity utilization at Petronet LNG’s terminal at Dahej (17.5 mt/y), the country’s largest, also dropped 6% to 90% this year.
Domestic customers’ aversion to pricey spot LNG cargoes caused a decline in business at these terminals, according to industry executives who didn’t want to be named. Shell terminal’s almost complete dependence on the spot and short-term cargoes showed up in a much sharper drop in business than Petronet’s terminal that has been saved by the volumes procured under long-term contracts where price increases haven’t been as sharp, they said. Long-term LNG imported from Qatar is linked to crude prices and currently costs about $11 per mmBtu while spot LNG costs $20 currently and had stayed above $30 for months this year.
