India Presses Buyers’ Advantage In Oversupplied LNG Market

Qatar is India’s dominant LNG supplier, though volumes are down. Renegotiation of the existing 7.9mn t/y contract between RasGas and India’s Petronet, and smaller recent deals, may well trigger a rebound in volumes from this year. But the Qataris, and other suppliers, are being squeezed on price.

Qatar remains India’s dominant supplier. But its share has been gradually falling. For April to December 2015, the first nine months of the Indian 2015-16 financial year, Qatar provided 60% of the country’s total LNG purchases (6.45mn tons out of a total of 10.74mn tons) with this falling to just 50% for Q4 2015. These figures are way down on 82% for 2014-15 and a whopping 89% for 2013-14 (see graph).

Qatari LNG exports to India were at 10.90mn tons for the 2014-15 fiscal year (ending in March 2015), down from 11.58mn tons the year before.

Qatar’s share has fallen as other suppliers such as Australia and Nigeria have benefitted. Australia went from zero volumes between 2012 and 2014, to being the second biggest supplier in Q4 2015 with 460,000 tons (the equivalent of eight cargoes).


DON'T HAVE AN ACCOUNT?


NEED TO UPGRADE YOUR CURRENT SUBSCRIPTION?

By upgrading your Print or Digital subscription you will gain access to the MEES Archives Database with past articles and data dating back from 1984.

UPGRADE