While discussing market condition of liquified natural gas (LNG) after Japan tsunami in March this year, industry experts laid emphasise on developing infrastructure for the LNG supplies in the country for the progress of gas-based industries including power generation.
Addressing the 'LNG Conference 2011' organised by Japan-based RIM Intelligence Co in Ahmedabad on Thursday, D J Pandian, principal secretary - energy, Government of Gujarat informed, "We have to take bold steps to go ahead with laying down the pipeline network in the country to increase the reach of LNG. The pipeline network is more concentrated in western region catering to states like Gujarat, Maharashtra, Haryana and Delhi but the country is huge and other parts need to get gas allocation."
He further highlighted the need of more LNG terminals in the country to facilitate gas supply in the eastern and southern regions. Currently, three operational LNG terminals are located on western coast, while others are under various stages of development.
After the Japan earthquake, which was followed by a tsunami that disrupted its nuclear power generation, the country cornered large volume of LNG supplies to ensure sustained power generation from its excess gas-based power capacities. This created lower availability of LNG globally, thereby causing a sharp increase in the LNG prices. As per the details provided by RIM, Japan's annual LNG imports are likely to swell by 100 million tonnes to about 800 million tonnes during 2011. Considering this, spot prices of LNG has surged by about US $ 7 to 8 per million metric British thermal unit (mmbtu) to about US $ 18 per mmbtu.
Gujarat already faces lower availability of gas for its industrial as well as domestic gas consumers.