India paid $1.2 billion for its LNG imports in July, a rise of 20 percent year-on-year, while monthly volumes continue to drop, according to preliminary data from the oil ministry’s Petroleum Planning and Analysis Cell.
LNG imports in July declined by 2.7 percent to 2.57 billion cubic meters, or about 1.88 million tonnes, the data shows. Imports rose compared to the previous month.
During April-July, India took 9.97 bcm of LNG, or some 7.32 million tonnes, down by 7.9 percent when compared to the same period last year, PPAC said.
India paid $4.5 billion for April-July LNG imports, up $1.2 billion from $3.3 billion last year.
As per India’s natural gas production, it dropped by 0.4 percent to 2.88 bcm in July. Gas production rose by 3.4 percent in April-July to 11.43 bcm.
India’s monthly LNG imports have been constantly dropping this year due to mostly high spot prices.
Asian spot LNG prices remained high during this entire year and they further rose this month due to mainly reduced flows of Russian gas in Europe.
European countries are buying LNG cargoes no matter the cost to ensure energy supplies ahead of winter.
The JKM LNG price currently trades at more than $66 per MMBtu for October.
At the moment, India imports LNG via six facilities with a combined capacity of about 42.7 million tonnes.
Petronet LNG’s 17.5 mtpa Dahej terminal operated at 86.7 percent capacity while Shell’s 5 mtpa Hazira terminal operated at 43.1 percent capacity in April-June, PPAC said.