Page 150 - CW E-Magazine (9-1-2024)

Hydrocarbons

FAVOURABLE MARKET CONDITIONS
Robust growth foreseen for LNG imports into India

in 2024

India is anticipated to experience pacity stands at approximately 25-GW, in 2024, especially with the Platts JKM
a notable upswing in liquefi ed natural translating to an annual demand for 30-mt (benchmark price for spot LNG deli-
gas (LNG) imports in 2024, with pro- to 35-mt of LNG. A few gas-based vered to Northeast Asia) expected to fall
jections suggesting a substantial 7-8% power units, historically reliant on below $10/mmBtu during the summer.
year-on-year increase. This surge is domestic gas due to high LNG prices,
expected to be driven by heightened are likely to transition to LNG in 2024 Experts suggest that India’s LNG
demand across key sectors, including owing to the anticipated weakness in consumption is likely to witness a signi-
power, industrial, and transportation, LNG prices. fi cant boost if prices dip below this
coupled with infrastructure develop- mark. The recent decline in prices has
ment in anticipation of national elec- LNG consumption by the power already led to increased spot buying,
tions, as per S&P Global. sector witnessed a remarkable 128% indicating a positive trend for the LNG
year-on-year jump over January-Octo- market.
Mr. Ayush Agarwal, an LNG ana- ber, reaching 7.4-mmcmd. Concurrently,
lyst at S&P Global Commodity Insights, India’s peak power demand surged The positive outlook for LNG
highlighted that while the fertiliser sector by 12.5% on a yearly basis during the imports in 2024 is also supported by
remains the largest consumer of LNG, the same period, reaching 243-GW. infrastructure developments, including
power and industrial sectors are poised the commissioning of HPCL’s Chhara
to contribute signifi cantly to the import Mr. Akshay Modi, a senior ana- and GAIL’s Ratnagiri breakwater
upswing if spot prices align closely with lyst covering South Asian natural gas, facility. Additionally, the commission-
the levels witnessed in 2023. LNG, and hydrogen at S&P Global, ing of IOC’s Ennore-Tuticorin pipeline
anticipates continued growth in regasifi ed is targeted for 2024, further enhancing
India’s current gas-based power ca- LNG consumption for the power sector the country’s regasifi cation capabilities.
PNGRB sets up expert committee to review safety

framework in oil & gas sector

The Petroleum and Natural Gas is headed by former HPCL Chairman, modalities and domain of PNGRB to
Regulatory Board (PNGRB) has set Mr. M.B. Lal. It will submit a report ensure safety and integrity of assets in
up an expert committee to review the in three months. The committee will the country’s downstream oil and gas
current safety framework in the oil and suggest a way forward to strengthen sector as mandated under PNGRB Act,
gas sector in the wake of an oil spill in the technical and safety system in the 2006,” the regulator said. It will also
Tamil Nadu in December 2023. The oil & gas industry, the regulator said. explore the inclusion of petrochemical
committee comprises six members and It will “examine regulatory regime, its plants in PNGRB’s domain.
PNGRB to invite bids for natural gas pipeline from

Jammu to Srinagar

The Petroleum and Natural Gas ing held in the last week of December taineer region of the Union Territory
Regulatory Board (PNGRB) said that it 2023. “This signifi cant project aims to (UT) of Jammu and Srinagar,” PNGRB
has granted approval for initiating the introduce the use of gas and contribute said. The project complements the
bidding process for development of a to the sustainable development of the ongoing development of the natural gas
325-km natural gas pipeline from Jammu Kashmir Valley. It is a signifi cant move pipeline from Gurudaspur to Jammu
to Srinagar. The approval was given to deliver this environmental fuel in a being implemented by GAIL (India), it
at the regulator’s 130th Board meet- cost-effective manner across the moun- added.

150 Chemical Weekly January 9, 2024

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