By Nidhi Verma
NEW DELHI (Wiseova) – India’s liquefied natural gas imports are anticipated to increase over the next few months to cater to the rising electricity needs across the nation, according to A. K. Singh, CEO of Petronet LNG, which is the leading natural gas importer in the country.
Last week, India activated emergency procedures, instructing businesses to run their underused natural-gas powered facilities at increased capacities from May 26 to June 30 in order to address the nation’s electrical needs, as indicated by a notification posted on the ministry's website.
India's power demand has been subdued so far this month as rains tempered temperatures in the country.
He anticipates that the demand for LNG will increase to a level comparable with last year’s figures. With growing electricity needs observed over recent days, they foresee this surge in LNG demand occurring during the third or fourth week of May and continuing into June.
Gas-powered plants have proven costlier compared to their coal, solar, and wind counterparts, leading to approximately three-fifths of all natural-gas fired facilities remaining idle across the nation.
As the difference between spot and long-term liquefied natural gas (LNG) prices narrows, it encourages several firms to increase their buying activities, he mentioned. Additionally, he noted that Indian buyers have a preference for LNG priced under $10 per million British thermal units.
Petronet aims to finish expanding its Dahah terminal from 17.5 million tons per year to 22.5 million tons per year within the coming three to four months, as stated; additionally, the company plans to optimize the use of this facility to address the higher demand expected during the summer period.
(Reported by Nidhi Verma; Edited by Toby Chopra)
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