Reports indicate that India’s dependence on import for natural gas may increase in the coming years because of the dwindling output from the Reliance Industries’ KG D6 basin.
Output at the KG-D6 basin declined to an all-time low of 17.3 million standard cubic meters per day (mmscmd) recently. Of this, about 15.2 mmscmd was supplied to top priority urea-making fertiliser plants and about 2 mmscmd was consumed by state-owned GAIL India’s LPG extraction units.
Petronet LNG imports 7.5 million tonne (mn t) of natural gas a year through a long-term contract with RasGas, Qatar.
The company has a back-to-back sales arrangement with GAIL, Indian Oil Corporation and Bharat Petroleum Corporation.
Besides this, the company entered into a contract to procure 1.44 mn tpa LNG from Exxon Mobil’s Gorgon Venture in Australia, which is expected to come in 2016. Additionally, there were two contracts which GAIL (India) had signed.
The landed cost of Qatar gas worked out to around $11 per mmBtu, and after adding transportation cost, marketing margins, taxes and local levies was available to consumer at about $12 per mmBtu.
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