Ukraine conflict: India's LNG firms see rising costs, shrinking supplies

Rising costs and shrinking supplies will impact major expansion plans

India’s liquefied natural gas (LNG) import terminals were once known for high utilisation rates, more than twice the global average of LNG regasification facilities. The Covid-19 pandemic, and the Russia-Ukraine war, have short-circuited this record and jeopardised upcoming plants.
 

Overall, utilisation of the installed LNG capacity was around 59 per cent last fiscal, and is expected to drop by half if all the plants come up and LNG imports do not grow substantially, industry officials said. As of fiscal 2022, Petronet LNG operated more than half of India’s LNG import capacity or 22.5 million tonnes (MT) a year. Shell, Gujarat