According to a new research report by RNCOS called ‘Global LNG Market Analysis’, the demand for LNG is expected to grow at a robust pace in both the developed and developing nations in coming years.
In spite of the economic slowdown of 2009, the market did not seem to have been affected as much as might have been expected, probably because countries globally understood the importance of using LNG. Thus, the LNG demand is anticipated to grow at a compound annual growth rate (CAGR) of 7.6% between 2010 and 2030. The soaring prices of crude oil and coal at the global level, and the concentration of countries towards clean power are the key factors fuelling growth in the sector.
India is one of the major LNG importing countries in Asia-Pacific. The majority of the LNG supply to India usually comes from the Middle East. Out of the total LNG import, Qatar accounts for the majority share. Moreover, India is expected to hold its position as the potential LNG importer in coming years. The main reason for this projection is the Indian government’s subsidisation of gas prices that has further encouraged the use of natural gas in a number of sectors.
The report has found that most of India’s available natural gas is allocated to power generation, sponge iron industry and fertiliser production. 100% foreign direct investment (FDI) allowance permitted in the sector is luring many foreign investors to explore more growth opportunities and expand their business operations.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/12072010/india_expected_to_drive_future_lng_boom/