India's LNG Terminal Capacity Seen at 47.5 mtpa in Six Years

India’s oil ministry expects country’s LNG import terminal capacity to double in next six years amid rising demand for imported fuel.

According to a document released by the ministry on June 3, country’s LNG terminal capacity will likely rise to 47.5 million tonne per annum (mtpa) by 2022 from the current 21.3 mtpa as existing terminals expand capacity and new ones get commissioned.

Demand for gas in India is expected to be driven by refineries, fertilizer and power plants. In 2015-16, the natural gas consumption in the country rose barely 2 percent to 52 billion cubic meters, of which 40 percent was imported as LNG. However, with global prices ruling low, consumption has soared, rising 14 percent in April, pushed by imports that rose 45 percent. LNG consumption in power sector has increased from the level of 3 mmscmd during April 2015 to a maximum level of 11.47 mmscmd during March 2016.

Currently, there are four LNG terminals at Dahej and Hazira in Gujarat, Dabhol in Maharashtra and Kochi in the state of Kerala. Capacity expansion of Dahej LNG terminal is expected from 10 mtpa to 15 mtpa by end of 2016. Further, a firm plan is in place to augment another 2.5 mtpa capacity at Dahej, the oil ministry document stated.

Work to develop a new LNG terminal of 5 mtpa at Ennore in southern Indian state of Tamil Nadu is at an advanced stage. In addition, two new R-LNG terminals of 5 mtpa capacity each (at Dhamra and Kakinada on the east coast) are also planned to be developed.