India: ‘LNG imports fell 9.1% despite declining prices’
Liquefied Natural Gas (LNG) imports fell 9.1% during February 2019, despite global prices falling, which bucks the established trend in India where LNG imports rise when prices fall, according to a report by India Ratings and Research (Ind-Ra).
This change in import behaviour could be explained by the dual trends of increased production and decreased consumption within India, the report added.
“LNG imports have been gradually declining since November 2018 and fell 9.1% year-on-year to 68 mmscmd (million metric standard cubic meter per day) during February 2019,” the report said. “On the other hand, the Henry Hub prices reduced gradually to $2.7/mmbtu (metric million British thermal unit) in February 2019 from $4.0/mmbtu in November 2018.” “This is in contrast to the historical trends seen where LNG imports have increased on a reduction in Henry Hub prices,” the report added.
According to Ind-Ra, whose analysis is based on data from the Ministry of Petroleum and Natural Gas, natural gas production rose 3.3% in February 2019 compared to a year earlier.
While ONGC registered an 8.5% increase in natural gas production, Oil India saw a 2.7% fall; private and joint venture fields saw a more drastic fall in production of 14%.
“Natural gas consumption decreased 2.2% year-on-year in February 2019,” the report said. “On a cumulative basis, natural gas consumption was up 2.6% year-on-year during April-February 2019.”