India’s sixth LNG import terminal comes online

In January 2020 India commissioned its sixth liquefied natural gas (LNG) import terminal, Mundra LNG, with a nominal import capacity of 0.7 billion cubic feet per day (Bcf/d). Mundra LNG is the third LNG import terminal located in India’s westernmost state, close to major natural gas consumption centers and a well-developed pipeline network.

All LNG import terminals in India except one are located on the west coast along the Arabian Sea. The first two terminals in operation—Dahej (2.3 Bcf/d capacity) and Hazira (0.7 Bcf/d capacity)—were placed in service in 2004 and 2005, respectively. These two terminals are the most utilized LNG facilities in India, operating at nearly 100% capacity utilization. In 2013, the Konkan terminal (formerly called Dabhol LNG, 0.3 Bcf/d capacity), located south of Mumbai, and Kochi LNG (0.7 Bcf/d), located adjacent to the Kochi refinery in southern India, were placed in service. Last year, India commissioned its first terminal on the southeast coast—Ennore LNG (0.7 Bcf/d)—primarily to serve customers in the Chennai area.

In the next three years, India’s LNG import capacity is expected to increase by one-third, with four terminals under construction expected to come online by 2023:

 

• Jaigarh LNG Floating Storage and Regasification Unit (FSRU) (0.5 Bcf/d capacity)
• Dhamra LNG (0.7 Bcf/d)
• Jafrabad FSRU (0.7 Bcf/d)
• Chhara LNG (0.7 Bcf/d)

Western India—the location of the Dahej, Hazira, and Mundra terminals—has a highly developed natural gas infrastructure, but the southern and eastern regions of the country lack pipelines to move natural gas from coastal LNG import terminals to major demand centers further inland. Future growth in India's LNG imports will be contingent on the timely completion of connecting pipelines. There has been limited pipeline development to move natural gas to cities north and northeast of the Kochi terminal, affecting its utilization. In addition, the pipelines connecting the Ennore LNG terminal to cities to the north and south of Chennai still need to secure land permits before construction can begin. In the meantime, the Ennore terminal supplies a local refinery and city-gas customers in Chennai. 

 

Source: EIA

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