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R-LNG to meet gas demand-supply gap

R-LNG to meet gas demand-supply gap

The demand for natural gas, the cheapest available energy option, is rising exponentially. The current domestic supply of gas is just over 150 mmscmdwhile the demand is around 225 mmscmd. Companies are now importing more of costlier re-gasified liquefied natural gas, or R-LNG, bringing the country to a stage where natural gas is no longer the cheapest option. With most companies passing on the costs, end users may pay more for natural gas and the situation is not likely to change anytime immediately.


The ceiling gas price from the Panna-Mukta field is $5.73 per mmBtu, while the current spot price for imported LNG is $12-14 per mmBtu. Recently CGD companies in Gujarat—Adani Gas, Gujarat State Petroleum Corporation (GSPC) and Gujarat Gas—increased the price of gas. The current R-LNG price is likely to further increase by up to 25 per cent by year end.

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