Sydney: Indian natural gas consumption is set to more than double by 2025, opening up opportunities for Australian liquefied natural gas (LNG) producers, the Australian government’s commodities forecaster said.
Gas demand in India may rise to 82 billion cu. m in 2025, from 32 billion in 2005, the Australian Bureau of Agricultural and Resource Economics said on Thursday in an emailed statement. India’s LNG imports may reach 10 million tonnes (mt) in 2015, rising to 31mt in 2025, it said.
Looking forward: Workers drill for gas on an offshore rig off the north-west shelf of West Australia.
Australia’s LNG export capacity of almost 16mt is set to jump by 56% with projects under construction at the Woodside Petroleum Ltd-operated North West Shelf venture and the Perth, Australia-based company’s Pluto project. Proposed additional plants by Chevron Corp., Inpex Holdings Inc. and others could add more than 46mt, the bureau estimates. “There is the potential for Australia to become a more significant supplier of LNG over the period to 2025, including to India,” the bureau said in the report.
“India is also likely to face competition in the next few years from established LNG buyers such as Japan and Korea who are willing to pay higher prices,” according to the report.