It seems that India’s declining imports for the Liquefied Natural Gas (LNG) has finally come to an end. The Petroleum Planning & Analysis Cell of the Ministry of Petroleum and Natural Gas released its monthly report. The released data recorded natural gas production, availability, and consumption for the month of April 2019.
The trend in LNG imports
The Petroleum Planning & Analysis Cell recorded India’s imports of LNG at 2,630 million metric standard cubic meters (MMSCM). LNG imports of India for the month of April 2019 increased QoQ by 12.7%. On YoY, LNG imports surged by 6.8%. The LNG imports rose after a five-month period of lower YoY imports. The Petroleum Planning & Analysis was recording a YOY decrease in the LNG imports from November 2018 to March 2019.
Petronet LNG Ltd., GAIL (India) Ltd., Gujarat State Petroleum Corporation Ltd., Reliance Industries Ltd, Torrent Power Ltd, Shell (formerly Hazira LNG Pvt. Ltd.), Indian Oil Corporation Ltd & Bharat Petroleum Corporation Ltd obtained LNG during April 2019.
The trend in Henry Hub Prices
The increase in imports of LNG ascribed to a gradual decrease in the came along with gradual downfall in Henry Hub Prices. Henry Hub prices are the benchmark for the parts of the global LNG market. In April 2019, Henry Hub gas prices stood at $2.65 per million metric British thermal units (mmBtu). Henry Hub Price for the month of April 2019 decreased by 5.3% against March 2019. On YoY, Henry Hub Price showed a 0.3% decrease. The Henry Hub Price plunged after a three-month period of higher YoY prices.
The trend in domestic Production of Natural Gas
In April 2019, domestic Production of Natural Gas in India was 2579 MMSCM. Domestic production of natural gas witnessed a downfall of 5.8% in April 2019 against March 2019. On YoY, it decreased by 0.7%.
The trend in Natural Gas consumption
The natural gas consumption of India in April 2019 recorded by the Petroleum Planning & Analysis Cell was 5209 MMSCM. Natural gas consumption in April 2019 marginally increased by 2.7% against March 2019. On YoY, natural gas consumption showed a 2.9% increase.
The Petroleum Planning & Analysis Cell reported total consumption of natural gas at 4341 MMSCM during the month of April 2019. The rise in the LNG imports of India can be largely attributed to a gradual decline in the Henry Hub Prices coupled with the downfall in domestic production of natural gas and an increase in natural gas consumption of India.