GLNG: India’s LNG imports rise in May for third consecutive month

Imports of LNG in India have risen in May for a third straight month, marking a sharp shift from years of weak demand for the super-chilled fuel. May’s total imports climbed to 2.7bn cubic metres, according to Refinitiv, which represents a 66% rise on February’s level.

In late May the Refinitiv-calculated spot price for LNG in Asia had fallen below $10 per million British thermal units (mmBtu) for the first time in two years. It represents a drop in price by 90% from highs of $70 last summer. Meanwhile, the trend has continued over the past week with the average LNG spot price for July delivery into north-east Asia falling to $9 per mmBtu.

Amid these declining prices, companies in India are betting heavily on a turnaround for the country’s LNG market. Given the government’s ambitious target to assume one of the leading global positions for LNG imports, it certainly appears that the country’s LNG sector should have a rosy future ahead, particularly considering that a goal has been set to double the share of gas in its energy mix to 15% by 2030.