LNG Business and Market Outlook in India – 2019

As India reeling under the pressure to reduce carbon emission levels, Country announced to double the share of natural gas in energy mix to 15% by 2022 which will witness hike in imports and huge capital investments inflow for construction of LNG terminals in coming years

The energy transformation is the key to diversification in energy supply, affordable and reliable energy access and, most importantly, energy security. India is on the path of energy transformation that is likely to solve the issues of accessibility of energy and related environmental issues. With this mind-set, India has planned to provide the thrust to improve the consumption of Natural Gas. As India already reeling under weight of growing consumption of Crude Oil and Coal and their associated pollution levels, India proposed to maintain the balance in energy consumption pattern with the help of doubling the percentage of natural gas to 15% in energy mix by 2022. Historically, India’s natural gas consumption pattern has been on upward trend since last 6-7 years. With limited natural gas reserves in India, the imports of natural gas which stood at 12.89 BCM in FY 11 has increased by more than two times to 26.33 BCM in FY 18 despite having less number of LNG terminals.

Report reflect a convincingly positive outlook for natural gas utilization in the country for future growth as gas economy between now and 2022. Interestingly, local distribution companies (LDCs) and interstate and intrastate pipelines appear to be more confident in future growth, but oil and gas producers are surprisingly not far behind. But what’s feeding the optimism in the industry participants was required to be determined which the dossier encompasses beautifully to join all the dots for the stake holders in gas business of the country. India, in particular, is poised to capitalize on low oil prices to embark on new projects. Petrochemical sector developers are assessing the feasibility of new fertilizer and sulphur recovery plants. These downstream projects could result in high returns when the market rebounds, making them easily bankable to investors. The report is packed with in depth analysis over the utilization of natural gas in India till 2022 and the balance with LNG in terms of industrial demand is also carved out in particular to the consuming sectors. The dossier also encapsulates the CGD network outlook in the country with a focus on pipeline infrastructure to meet the demands of all the sectors like domestic , commercial, industrial and transport sector in the country.

BUSINESS CASE FOR LNG IN INDIA

• India may see a 6 times growth in the Indian gas market by 2030 from the current levels, with LNG to be the largest contributor
• As per MoPNG, LNG import terminal capacity to double to 47.5 MTs by 2022
• The Government plans to launch the auction of 60 oil and gas fields being offered in the second round of bidding for Discovered Small Field (DSF) on August 9, 2018.
• Use of LNG as a transport fuel is on the priority list of the government and is working in line for setting required infrastructure.
• Petronet is setting up 20 LNG stations at petrol pumps on highways along the west coast that connects Delhi with Thiruvananthapuram covering a total distance of 4500 kms via Mumbai and Bengaluru
• Automotive sector in India foresees a demand of 8-9 MTs of LNG annually by 2022
• India opens biggest city gas licensing round likely to attract investment of INR 70,000 Crore
• Government targeting to raise share of natural gas in the primary energy basket to 15 per cent from current 6 per cent, in next few years

• Indian Natural Gas Demand & Supply Dynamics – LNG Role & Impact
• Indian LNG Market Infrastructure- Status & Access
• Opportunities in Expansion of LNG Terminal Infra in Country
• Infra Expansion of LNG Terminals & Trade Opportunities in India
• Indian LNG Demand Outlook & Terminal Infra as a driver
• Existing LNG Terminal Overview and Expansion Plans in India
• Upcoming & Under- Construction LNG Terminal Overview and Planned Capacity
• Opportunities in Small Scale LNG Projects in India
• Cost, Regulatory & Policy Dynamics – Evaluation
• Opportunity for Shipping & Pipeline Infra Developers
• Companies Deck- LNG Terminal Profiling

• First hand sector knowledge and inputs
• Primary research inputs from F2F interviews with domain experts
• Experts insights and market reviews taken into consideration
• Validated data and analysis
• Opportunity mapping and market sizing
• Germinates from minds that think fresh to evolve path finding guide for all stake holders through quality information and analysis
• Free query handling and analyst support for three months from the date of report procurement

• Examining favourable cost dynamics in small scale LNG projects in India
• Analysing equity acquisition opportunity
• Identifying opportunity in recent contracts for value chain players
• Examining regasification tariffs and outlook
• Tracking opportunity for shipping and pipeline infra developers
• Evaluating region wise business case in expansion of LNG terminal infra

• Analysing LNG demand in India by current infra range and identifying the demand drivers
• Analysing LNG demand in India by planned future capacity range and identifying the demand drivers
• Identifying seasonal demand variance of LNG and the factors driving the same
• Impact analysis of LNG on city gas distribution
• Demand identification of LNG from passenger & transportation vehicle segment
• Evaluation of Policy and Regulatory landscape in LNG market
• Opportunity assessment for pipeline infrastructure developers and shipping segment

• National Oil and Gas Companies
• LNG Players
• LNG Traders
• Players into LNG Terminal Infra
• Energy Trading Players
• Pharmaceutical Players
• O&G Downstream Players
• Fuel Retailers
• Automobile Players
• Project Consultants
• Research Firms
• Technical Consulting Groups