India’s domestic natural gas production has remained in the range of 83-90 MMSCMD during the past six years. Domestic gas production had increased sharply to 143 MMSMD in FY2011, following the commissioning of RIL’s D6 block in KG Basin. The production, however, declined gradually to reach 83 MMSCMD in FY20 owing to fall in production from both KG-D6 and Panna Mukta Tapti blocks.India’s domestic production is not enough to meet the growing needs of its economy. Hence to reduce the demand-supply gap, India started importing LNG in the year 2004 with the commissioning of Petronet LNG’s terminal in Dahej, Gujarat.

Since then, five more terminals at Hazira, Kochi, Dabhol, Ennore and Mundra have been commissioned. Another two terminals are under construction including, India’s first FSRU at Jaigarh by H-Energy. This number however is meagre as compared to around 20 terminals planned during the previous decade

India’s regasification capacity currently stands at 42.5MMTPA. Only Petronet’s LNG terminal at Dahej and Shell’s terminal at Hazira are operating at near optimal capacity. Other terminals remain underutilised and operate at less than 25% of their regasification capacity. Terminals at Kochi and Ennore are operating below capacity due to insufficient pipeline connectivity with the demand centres. The 5 MMTPA Dabhol terminal is being operated at low capacity owing to the absence of the breakwater required for protecting LNG ships during the monsoon season.