Word from Industry

LNG : A passage to India

July 20, 2017

The Indian subcontinent is set to become ever more thirsty for LNG.

 

When it comes to LNG demand, the Indian subcontinent is one of the thirstiest regions in the world. Analysts are tipping established LNG importer India, new buyer Pakistan and untapped Sri Lanka and Bangladesh as the growth markets to watch.

So let’s take a look at those countries.

 

First, India increased its LNG imports nearly 40 per cent last year, reaching close to 20 million tonnes, brought in through four import terminals, all of them on the country’s west coast. Now, India plans to add at least four new terminals and the centre of gravity is shifting towards the east.

 

Pakistan, on the other hand, imported its first LNG cargoes just two years ago, using a floating storage and regasification unit (FSRU). It will take delivery of its second FSRU from BW this summer and has already chartered its third and fourth floating import vessels.

 

Excelerate, which supplied Pakistan’s first FSRU, will also supply the third. Höegh is due to deliver the fourth. All four vessels will be based at Port Qasim in Karachi.

 

Bangladesh is likely to be the next country in the region to join the LNG-importers’ club, early next year. Excelerate is to supply an FSRU to Moheshkhali Island to support this initiative. Looking ahead, Bangladesh has plans for at least two more projects that are not yet confirmed.

 

Sri Lanka is lagging behind its neighbours. Indian gas importer Petronet wants to build the country’s first LNG-import terminal north of Colombo and India’s prime minister Narendra Modi has visited Colombo to promote the 2 million tonne a year project.

 

International Energy Agency figures suggest that India could import around 50 million tonnes per year of LNG by 2030. It also expects Pakistan and Bangladesh to import up to 19 million tonnes apiece by then, too.