India's consumption is rising as global prices have eased: Gas importer

By Nidhi Verma

NEW DELHI (Reuters) - India's gas consumption is rising as global prices have eased, the chief executive of the country's top gas importer said on Monday.

Petronet LNG operates the country's biggest liquefied natural gas (LNG) import terminal at Dahej in western India. The terminal has a capacity to import 17.5 million metric tonne per year (tpy) of LNG.

"We get indication from utilisation rate (of gas import terminals)," said Petronet chief executive officer A.K. Singh.

He said the Dahej terminal is operating at 95% capacity compared to 85% a year before.

Eased gas prices, triggered by the built-up of stocks by European nations, is boosting gas consumption in the price-sensitive Indian market.

Singh said he hoped gas prices would remain stable this year if European winter is "not too harsh."

He said prices of the spot and long term LNG are almost similar at $11-12 per million British thermal units (mmBtu) .

"When prices come to $11-12 (per mmBtu) then it is competing with alternative fuels," he said.

 

(Reporting by Nidhi Verma in New Delhi; Editing by Toby Chopra)