Mar 16: Some calculations have come up on the economics of LNG when compared to liquid fuels.
8LNG vs. alternative fuels economics up to 2020 is documented.
8Interestingly enough, by this arithmetic, GAIL's US cargoes turn out to have the cheapest landed price.
8Overall, the data shows gas-to-oil economics to be stable for term LNG contracts like those with RasGas, as ex-terminal price (net of taxes) would be similar to FO at $65/bbl Brent price assumed in FY19.
8Due to high Kochi regas tariff, Gorgon LNG contracted to the terminal is more expensive. However, the LNG out of  the terminal allows for positive economics for refineries, fertilizers and industries
8Spot LNG prices are high now but are expected to settle at an average of $8-9/mmbtu (13% slope), which is at par with FO or else winning the battle with liquid fuels will be difficult.
8If supply infrastructure is available, and if there is just the right kind of policy push, gas consumption can gain in what is a highly competitive market in India
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