NEW DELHI: India’s LNG imports rose 17.4% to a record 2.7 million tonnes so far in Oct on the back of higher demand from the power, fertiliser and city gas distribution sectors. Besides, more cargo arrived from Qatar and the UAE, data from maritime intelligence and research firm Kpler showed.Crude imports also reached a record 5.6 million barrels per day (mbd) during the month, 14% higher than a year ago, with Russia remaining the top supplier, while shipments from West Asia and the Atlantic Basin also rose.LNG supplies increased as India’s domestic production has declined, pushing up the import dependence from 50% to nearly 52%. In addition, companies are seen to be stocking up the gas for the power sector, as solar energy is set to decline in winters, and the fertiliser sector will need higher feedstock for production.
Crude imports also touch a record 5.6 million barrels per day in October, with Russia retaining its position as the top supplier despite declining shipments.
According to Kpler data, the record LNG imports in Oct can be attributed to a sharp rebound in supplies from Qatar, which had remained curtailed due to disruptions in shipments through the Strait of Hormuz during the West Asia conflict. Qatar has traditionally been the biggest supplier of LNG to India, accounting for 40-50% of total imported volumes. In Sept last year, India imported nearly 2.1 MT of LNG, of which 0.8 MT came from Qatar. India received more than 0.4 MT of LNG from Qatar this month, the highest volume since the war broke out. The supplies were 370% more than the 0.1 MT received from the West Asian nation in Sept, and only marginally lower than the cumulative imports between March and Sept.Despite its production facilities being impacted, sources said Qatar was willing to increase LNG supplies and meet its long-term commitments to customers.The US, however, continued to remain the biggest supplier of LNG, with 0.6 MT of supplies till Oct 29. The UAE, Oman, Angola, Nigeria and Australia were other major suppliers during the month. Though Russian crude flows have declined from a peak of 2.8 mbd in July to nearly 2 mbd in Oct, Moscow remained the largest supplier, accounting for nearly 36% of total imports.Nikhil Dubey, Kpler’s lead analyst – refining, however, said elevated freight costs of Russian barrels had eroded their delivered-price advantage, while improved supplies from West Asia offered competitive alternatives to refiners. He said supplies from Gulf countries stood at around 2.3 mbd in Oct, compared with 2.7 mbd in Sept, with Saudi Arabia leading the pack, followed by Iraq.