Indian imports drop after price rises

Tuesday, 27 July 2021
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Indian liquefied natural gas imports last month dropped by more than 17 percent amid a 40 percent surge in cargo prices year-on-year, while domestic natural gas production more than offset the fall in imports.

LNG imports for the month of June amounted to 1.71 million tonnes, or 25 cargoes, a fall of 17.4 percent on the 2.07MT received in June 2020, according to preliminary monthly data from the Indian Ministry of Petroleum and Natural Gas.

Shipments in May 2021 had increased by 9.2 percent to 1.91MT, or 28 cargoes, compared with 1.75MT received in May 2020.

The cumulative imports of LNG to India for the first three months of the fiscal year so far increased by 8 percent to 5.59MT from 5.17MT in the April-June period of 2020.

However, India is having to pay much more for its LNG cargoes than it did a year ago.

The June imports cost around $700 million, an increase of 40 percent on the $500M total spent in June 2020.

The Ministry data also showed that domestic natural gas production for the month of June 2021 was 2.77 billion cubic metres, which was up 19.5 percent compared with the 2.32 Bcm logged in June 2020.

Domestic gas production for the first three months of the fiscal year amounted to 8.17 Bcm, a jump of 20.5 percent on the 6.78 Bcm of output in the April-to-June period of 2020.

New gas production wells have recently come on stream in the Krishna-Godavari Basin in eastern India from projects involving the Indian group Reliance Industries and UK major BP.

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