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The future is here-II: For LNG suppliers, it is a dangerous and high stakes game
Jun 21: By all yardsticks, the LNG gas supply business has become a dangerous high stakes game.
8If the conservative demand estimates for LNG is a mere 30 MMTPA by 2025 (established by a leading research agency), where is the room for maneuver for the spate of new LNG gasification plants which are coming in?
8Existing LNG capacity is already at 26.6 MMTPA, and with an additional 2.50 MMTPA expansion by Petronet LNG, all the capacity needed until 2025 is already there.
8The current average LNG capacity utilization level is low, and the extra demand that is likely to come up by 2025 will the fill the slack
8Their is now a furious rush to look for the non-existent or elusive gas customer by promoters of new LNG plants and suppliers.
8The demand for gas from the power sector is likely to be tepid in the face of falling power prices resulting from the spate of solar energy projects coming up coupled with tepid power demand and competition from coal based power plants. Gas based power is an unviable proposition in India as of now.
8The fertilizer segment is in the control of GAIL who is likely to fight any attempt to weaken its vice like grip on this crucial segment of industry.
8Pushing out entrenched liquid fuel consumers to switch to gas is turning out to be a frustrating struggle for gas suppliers.
8Rising domestic gas supply projections makes the picture rather bleak for the LNG industry as of the moment.
8Crude prices are again spiraling down, making liquid fuels competitive. This is going to hurt gas suppliers.
The website carries here a set of documentation to prove the conclusions drawn above. Click on Reports for more  


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