India’s LNG regasification operable capacity is expected to rise by 12 mmtpa due to removal of constraints at existing LNG terminals, according to Motilal Oswal Financial Services.
Nearly 24 mmtpa of capacity additions are underway at Dahej and greenfield terminals at Chhara, Jafrabad, Dhamra and Jaigarh over the next few years.
Just the KG Basin is expected to result in 45 mmscmd of incremental domestic gas (that is 47 per cent of the domestic gas consumption).
India currently has an LNG regasification capacity of 42.5 mmtpa. However, the operable capacity is 30 mmtpa, said the report by Motilal Oswal.
With the completion of major pipelines like Jagdishpur-Haldia, Mehsana-Bhatinda, Kochi-Bangalore and upcoming northeast gas grid, India’s total trunk pipeline network is expected to grow to 32,600 km from 17,126 km, increasing the reach of gas to a larger number of consumers.
A blanket ban on coal gasifiers had resulted in a doubling of gas consumption in Morbi in CY19. With easing of Covid-related lockdowns, stricter actions may be in store for these polluting clusters, thereby encouraging adoption of natural gas.
The National Green Tribunal (NGT) is focused on reducing pollution and 90 per cent rise in length of trunk pipelines is expected over the next few years. Besides, there is increased availability of LNG operable capacity (57 per cent) and availability of domestic gas (30 per cent).
“We expect the alignments of stars — the syzygy — to bode well for India’s gas sector,” said the report by Motilal Oswal.