Share of LNG in India's Gas Mix to Reach 38% in 2015-16

Share of LNG in India’s gas mix will reach 38% in 2015-2016 due to low domestic natural production, Press Trust of India quotes from a report published by Goldman Sachs.

Goldman Sachs said in a research report that out of the total availability of 128 million standard cubic meters per day of gas in the country last year, 83 mmscmd, or about 65 percent, was produced from domestic fields.

Oil and Natural Gas Corp (ONGC) was the biggest producer of domestic gas at 50 mmscmd, while Reliance Industries' eastern offshore KG-D6 is estimated to have supplied 13 mmscmd, says Goldman Sachs. The remaining 45 mmscmd of gas was imported in liquid form.

In the current financial year 2014-2015, domestic output is expected to rise to 89 mmscmd on the back of a marginal increase in the output of ONGC and RIL, while import of LNG is projected to increase to 52 mmscmd, or almost 37 percent of the total gas mix, Press Trust says citing the report

In the year 2015-16, domestic output will climb to 95 mmscmd and so will LNG imports to 59 mmscmd, or 38 percent of the gas mix.

According to Goldman, at the current price of $4.2 per million British thermal units, there is an unmet demand of 122 mmscmd.

The unmet demand at the likely price of $8, after the Rangarajan formula is implemented, dips to 93 mmscmd and drops further to 78 mmscmd at $10 per mmBtu gas price and to 62 mmscmd at $12 rate, the report says.

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