November 10, 2022 09:08 GMT
Full LNG Terminals in India due to Industry Fuel Switching
India is suddenly facing a surplus of LNG as industries look for alternative sources instead of the high priced gas imports.
- Storage at the Dahej and Hazira LNG import terminals are near max capacity. Lower demand due to higher prices has led to a reduction in usage at Petronet's biggest import terminal at Dahej according to CEO Akshay Kumar Singh. Industry has started buying cheaper oil products and domestic gas instead.
- India has several long-term LNG contracts, making it challenging to significantly reduce imports but scheduled deliveries may need to be delayed.
- This is a reversal of the recent struggle to secure supplies and cope with a gas shortage.