Gas hungry IndianOil lines up more spot LNG

Vol 18, PW 22 (02 Jul 15) Midstream & Downstream

IndianOil is planning a total 12 spot LNG cargoes from now until March 31 next year as it accelerates imports to feed its refineries and growing CGD business.

On June 11, the first of these landed at Dahej - a 142,500 cubic metre cargo aboard tanker Seri Angkasa, from Nigeria LNG through Gas Natural Fenosa, Petronas and Trafigura at $7.50/mmbtu ex-ship. Over the next few days IndianOil is expecting a second spot LNG cargo sourced from Vitol, most likely priced the same.

On July 1, IndianOil released a tender for a spot delivery in August. IndianOil is fast becoming one of India's major spot LNG importers.

In addition to five spot LNG cargoes imported on its own, it's planning another two spot cargoes through Petronet-LNG and five from GSPC. Credit the surge in spot LNG imports to a one-year 800,000 tonne Petronet-LNG contract for gas from RasGas that ended in March 2015.

Much of the gas will be used to feed IndianOil's refineries, located across India at Koyali in Gujarat; Panipat in Haryana; Mathura in Uttar Pradesh; Haldia in West Bengal; Chennai in Tamil Nadu; Barauni in Bihar; Digboi, Bongaigaon and Guwahati in Assam. Also urgently needed is R-LNG for its gas joint venture with Adani Gas, which operates in Agra and Lucknow in Uttar Pradesh with networks planned at Allahabad in Uttar Pradesh, Chandigarh in Punjab, Panipat in Haryana and elsewhere.