Manage and streamline operations across multiple locations, sales channels, and employees to has improve efficiency and your bottom line.

← Back to all news
Rising European demand, lack of gas storage, and unclear LNG procurement strategy may cause trouble for Indian consumers.

Rising European demand, lack of gas storage, and unclear LNG procurement strategy may cause trouble for Indian consumers.

Natural Gas January 10, 2023

India is facing a major challenge in 2023 as the prices of liquefied natural gas (LNG) are expected to fluctuate greatly between $10 and $50 per million British thermal units (mBtu). Unlike oil, where India has access to cheap sources in Russia and West Asia, there is no affordable source for LNG. The country's fertilizer and city gas industries heavily rely on natural gas, and India's goal to achieve net-zero carbon emissions by 2070 depends on an increased use of gas as a fuel. According to a recent report by Fitch Ratings, the aim of raising the share of natural gas in India's primary energy mix to 15% by 2030 - up from 6% in 2017 - is threatened by price instability and infrastructure limitations. The report noted that progress towards the target has been slow, with the share remaining at 6% in 2021, as growth in natural gas consumption has failed to surpass overall energy growth. A deficient gas pipeline network, combined with the expectation of delays in some ongoing projects, may restrict natural gas demand growth to below its inherent levels, even during low price periods. A government panel has proposed modifications to the pricing formula for domestic gas, including the establishment of minimum and maximum prices for gas from legacy fields, while maintaining the current upper limit for gas from challenging fields. We believe that any change in the pricing formula remains subject to further government deliberations around considerations of incentivizing upstream capex, curtailing inflation and minimizing government subsidies while maximizing returns, and promoting natural gas as a fuel," Fitch added. Note – Every photo is symbolic (Photo Source: Google) All news and stories given on this website are reported by the reporter or taken from some source. Our endeavor is and will continue to provide you with the best information. The responsibility of this news and other things will be with the author (reporter) and the source.