GSPC overtakes Reliance as biggest LNG importer

Vol 22, PW 18 (27 Jun 19) Midstream & Downstream
     

Since April this year GSPC has overtaken Reliance and landed 12 spot cargoes at DAHEJ and Hazira, with imports likely to accelerate further, driven by soaring demand from ceramics producers, forced to switch from dirty fuel to clean gas.

GSPC sources report the company’s gas trading business is booming, driven by rising demand for piped gas through sister company Gujarat Gas from India's ceramics manufacturing hub at Morbi. On June 8, Gunvor supplied GSPC with a 154,890-cubic metre Angolan cargo at DAHEJ.

Four days earlier on June 4, ADNOC LNG and Vitol jointly supplied a 135,736-cubic metre cargo from Abu Dhabi at Hazira. GSPC is also expected to land three more LNG cargoes before June 30.

In May, GSPC landed four cargoes - three at DAHEJ and one at Hazira; while in April it received six cargoes: four at DAHEJ and two at Hazira. By contrast Reliance has landed only nine spot cargoes, all at Hazira, since April.

"We are sourcing more cargoes from the spot market and this will continue," confirms a GSPC source. "Earlier we had only one "slot’ at Hazira (to bring in one cargo/month).

But now we have two "slots’ (for two cargoes/month) because DAHEJ is busy." Gujarat Gas has seen demand for gas soar in Morbi since it was ordered to use clean gas instead of coal and coal tar on March 9, 2019.