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How price sensitive is the Indian LNG market?
Jun 18: How sensitive is the Indian market to to gas prices?
8This is a question that has been occupying the minds of both suppliers and buyers of LNG in India
8The fact that demand is price sensitive is clearly evident. For example, when LNG import prices dropped by 33% to less than $7/MBtu in 2016, India’s LNG imports rose by 30%.
8However, not all the increase can be attributed to lower prices as the Indian government adopted a financial mechanism which envisaged importing additional spot LNG in FY2016 to supply stranded gas power plants.
8There are a complex set of forces that ultimately determine demand in India
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