LNG

State-run firm poised to call bids to set up 50MW LNG-based projectThe fuel sourced through an FSRU will help generate 50MW of power for the archipelago

In the crude oil market, plunging prices triggered a huge contango, where traders anticipate gains in future months and have an incentive to put the commodity into storage for months or years.

Plant operators are looking to revive their gas-fired capacity, which accounts for 7% of India’s total capacityGas comprises about 6.2% of India’s primary energy mix, far behind the global average of 24%

Asia is expected to remain the dominant region in the decades to come, with South and South-East Asia generating more than half of the increased demandNew spot-trading mechanisms and a wider variety of indices used for long-term contracts point towards LNG becoming an increasingly flexible commodity

A shift to LNG-powered trucks from diesel will cut pollution and turn Indian highways quieterLNG is environment-friendly natural gas turned into liquid at minus 160-degree Celsius for ease of transportation in ships and trucks

The deal was announced after PM Narendra Modi arrived in Vladivostok on Wednesday for summit talks with Russian President Vladimir Putin H-Energy is laying two pipelines — one from Jaigarh to Mangalore and Kannai Chatta to Shrirampur — for transporting the imported fuel to consumers

BPCL will hold 74% interest in the project while the remaining 26% will be with Petronet LNGBPCL is betting big on gas business in anticipation of energy consumption basket undergoing change as focus shifts to cleaner sources

Procurement for the colder season is only expected to intensify over what’s left of the summerThe rout can be traced back to last winter, when mild weather dented demand for heating in large parts of the northern hemisphere

Lower domestic natural gas production in June coupled with higher demand and lower prices at Henry Hub led to the rise in LNG importsDuring April-June, the average Henry Hub prices were 11.8% lower year-on-year at $2.5 per mmBtu due to global supply-demand equations

Crisil expects spot LNG prices to trend lower in 2019, averaging $5-6 per mmbtuGovernment plans to waive off customs duty of 2.57% as well as bring natural gas under the GST regime (lower rate at 5% as compared to 15-20% VAT at present)