SME Times News Bureau | 23 Jan, 2021
India's efforts to build a gas based economy is set to
get a boost from the falling spot LNG prices that had skyrocketed to
over $30/mmbtu (from $2 a few months ago on the back of the winter
demand and supply constriants.
According to an estimate made by
Emkay Global Financial Services, Asian spot LNG prices have started
cooling off now with the latest deals happening at sub-$ 10 level for
March delivery.
This should consolidate at $ 5-6/mmbtu due to
seasonality and resolution of supply issues, offering higher volumes for
the Indian LNG players, the brokerage said in its report.
Indian
spot LNG demand (20 per cent of consumption) is likely to be affected
in January and February months but, thereafter supplies are expected to
recover on the back of sub $ 10/mmBtu prices. This should also better
avenues for entries such as GSPL, PLNG.
Indian deals (for spot
LNG) have happened at the rate of up to $ 14-15/mmbtu recently. Out of
95mmscmd of Indian RLNG demand, 50-55mmscmd is long term, 10-15mmscmd is
short term and remaining 30mmscmd is spot.
