MUMBAI : A 15-fold increase in spot liquefied natural gas (LNG) prices over the past year could hurt its imports and consumption, as well as India’s progress towards becoming a gas economy, according to industry players and analysts. Asia-delivered spot LNG prices have risen to $30 per mmBtu (million metric British thermal unit) from under $2 per mmBtu in May 2020. With winters setting in and demand for natural gas on the rise globally, analysts expect spot LNG prices to climb further to $40 per mmBtu by December. “The selling price of domestically produced natural gas has been increased by 62% by the government with effect from 1 October. “We reduce India’s gas demand estimates by 4%/3% for FY22/23E and reduce our gas transmission/LNG import volumes," said UBS Research in a 1 October report.

Source: Mint October 10, 2021 17:23 UTC