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The shipments were driven by an emergency order to operate gas-fired plants. (Representational)
India’s booming liquefied natural gas imports are likely to slow as cooler weather due to monsoon rains crimps electricity demand and increases in hydropower crowd out expensive gas-fired generators.
“Electricity demand won’t be as high as it was in May and June, which is the prime driver of higher LNG imports,” said Ayush Agarwal, LNG analyst at S&P Global Commodity Insights.
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The shipments were driven by an emergency order to operate gas-fired plants, most of which typically remain under-utilised due to their high generation costs. That resulted in a 63% increase in output from the units during the three months through June.
However, as the interim ruling came to an end on June 30, LNG imports are likely to see a decline for the remainder of the year, Agarwal said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Jul 04 2024 | 4:59 PM IST
