India faces headwinds to LNG expansion plans

By Garima Chitkara 16 August 2016
A fertiliser factory in Mumbai. The sector may boost gas demand in India. (PA) A fertiliser factory in Mumbai. The sector may boost gas demand in India. (PA)

India is looking to expand its LNG import capacity, but market participants are concerned that price-sensitive demand and poor infrastructure will undermine the viability of new projects.

India has four LNG terminals – at Dahej, Kochi, Dabhol and Hazira – with a combined 25 mtpa of regasification capacity. Dahej is reportedly being expanded in two phases from 10 mtpa to about 20 mtpa, although these figures are unconfirmed by operator Petronet LNG. Construction has also started on a new 5 mtpa terminal at the port of Kamarajar in Ennore, north of Chennai.

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