LNG demand in India | |
LNG demand in India is highly elastic when prices fall, consumption surges when prices rise, industries shift to alternative fuels. Petronet LNG PLL’s LNG volume fluctuations illustrate this trend: Last summer (2024), LNG prices softened, and PLL’s terminal utilization exceeded 109%-110%. In contrast, in Q3 FY25, with higher prices, utilization dropped to 93%. Long-term volumes, which were above 100 TBTU in FY23, have now fallen below 100 TBTU due to pricing concerns. The Threat from Alternative Fuels Coal remains the biggest competitor due to its cost advantage and local availability. Fuel oil, naphtha, and renewables also challenge LNG when it becomes expensive. Propane is now an active competitor in high demand areas like Morbi PLL’s own management acknowledged that higher LNG prices cause industrial consumers to shift to other fuels. #LNG #Indianpetroplus | |
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Target State: All States Target City : All Cities Last Update : Feb 10, 2025 3:01 AM Number of Views: 17 | Item Owner : Indianpetroplus Contact Email: Contact Phone: (None) |
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