LNG macro analysis, page-2230

India’s LNG imports jump in August

Imports of liquefied natural gas (LNG) into India rose in August when compared to the corresponding period last year.

Data from the oil ministry’s Petroleum Planning and Analysis Cell (PPAC) shows that 2.74 billion cubic meters have been imported during the month under review. This is a 10.3 percent increase over the volumes imported in August 2018.

The cumulative imports for the fiscal year (April-August) so far have reached 13.49 bcm, 8.1 percent above the volumes recorded in the corresponding period last year.

The cost of imports dropped when compared with August 2018. The figure stands at $0.8 billion while last year’s figure stood at $0.9 billion. The price of imports for the fiscal year reached $3.9 billion, $0.4 billion below the previous fiscal year.

Ministry’s data shows that Petronet LNG’s Dahej terminal once again operated above full capacity utilization. Namely, the terminal operated at 109 percent capacity utilization during the fiscal year so far with Hazira LNG terminal operating at 96.8 percent capacity utilization.

Kochi and Dabhol LNG terminals operated at 15 and 3.2 percent capacity utilization, respectively.


India’s LNG imports up in June

Imports of liquefied natural gas (LNG) into India increased in June when compared to the corresponding period last year.

Data from the oil ministry’s Petroleum Planning and Analysis Cell (PPAC) shows that 2.73 billion cubic meters have been imported during the month under review. This is a 4.9 percent increase over the volumes imported in June 2018.

The cumulative imports for the fiscal year so far have reached 7.92 Bcm, 5.9 percent above the volumes recorded in the corresponding period last year.

The cost of imports remained on par with June 2018, at $0.9 billion the data shows. The price of imports for the fiscal year reached $2.4 billion, 4 percent below the $2.5 billion during the previous fiscal year.

Domestic natural gas production in June was at 2.73 Bcm, 1.6 percent below the volumes produced in June 2018. In the current fiscal year, natural gas production reached 8.01 Bcm, 0.5 percent down on the corresponding period last year.

Ministry’s data shows that Petronet LNG’s Dahej terminal operated at 108.8 percent capacity utilization during the fiscal year so far with Hazira LNG terminal operating at 95.5 percent capacity utilization.

Kochi and Dabhol LNG terminals operated at 12 and 2.9 percent capacity utilization, respectively.

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Kogas inks long-term LNG supply deal with BP

Image courtesy of Ministry of Trade, Industry and Energy

South Korean state-owned Kogas signed a long-term liquefied natural gas supply deal with the UK-based energy giant and LNG player BP.

According to a statement by the South Korean Ministry of Trade, Industry and Energy, Kogas will be importing 1.58 million tons of LNG per year.

However, the deal includes a three-year extension option that, should it be enforced, could bring the total contract value up to $9.6 billion.

The volumes would be supplied from the Freeport LNG facility on Quintana Island in Freeport, Texas.

The ministry noted that the deal is expected to tighten the energy cooperation between South Korea and the United States as well as securing the diversification of the LNG supply sources.


Japan to break dependence from Middle East oil with $10bn LNG investment

Japan could invest up to $10 billion to advance wider use of LNG globally to alleviate the potential effects of heavy reliance on oil from the Middle East.

Industry minister Isshu Sugawara is set to present the plan that includes funding such projects as processing plants, receiving terminals, and power generation.

The $10 billion investment will include public-sector financing from the Japan Bank for International Cooperation, as well as investment from the state-backed Japan Oil, Gas and Metals National Corp., along with trading houses and financial institutions.

According to a report from the Nikkei Asian Review, the government-owned Nippon Export and Investment Insurance will offer full coverage for LNG-related financing provided by foreign funds and other institutional investors.

The fuel enables energy importers to reduce their traditional reliance on crude oil from countries clustered in the Middle East, where U.S. sanctions on Iran and the recent drone attack on Saudi oil facilities raised questions about the supply outlook. Japan sources nearly 90 percent of oil from the region.

With LNG, the supply risk is spread out.

Namely, the Middle East accounts for 60 percent of global net exports of crude oil but just 20 percent of net LNG exports.

LNG can be sourced from other locations such as Russia, Australia, African nations, as well as the U.S.

Japan will also layout plans to train 500 experts in such areas as LNG receiving technology and drafting of environmental regulations, in anticipation of stronger demand for the fuel.

The government previously promised $10 billion of support at the 2017 conference.

It met this target with four large-scale projects, including LNG Canada – a joint venture of Mitsubishi, Shell, Petronas, PetroChina, and Korea Gas – and Novatek’s Arctic-2 project, partly funded by Mitsui & Co.

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