Heatwave sends LNG cargo arrivals soaring
Severe heat across India this summer means those fortunate enough to have air-conditioners keep them on full blast.
Increased gas-fired power demand also means that a record 41 cargoes arrived at six LNG terminals between June 1 and 30 (2024). "This is the highest number of LNG cargo arrivals in recent times," says a GAIL source.
"LNG is available at an attractive price, and the scorching heat wave in April, May, and June saw brisk cargo arrivals." In comparison, January saw 33 cargoes, February saw 30, March saw 36, and April saw 28.
But May saw as many as 36 cargoes arrive. According to news reports, 60 people died from heat-related problems between March and May 2024, as temperatures in some parts of the country crossed an unimaginable 50 degrees Celsius.
To meet this demand spike, power ministry director Manish Mishra released a six-page order on April 12 (2024) to 26 gas-based power stations operated by NTPC, Torrent, GSPC Pipavav Power and others. Under Section 11 of the Electricity Act (2003), Mishra wrote: "It is necessary to ensure that the operational capacity of gas-based generating stations is utilised during the crunch period to optimise the availability of power during the ensuing high demand period."
A GAIL source adds gas-based power plants usually operate well below their capacities because the electricity they generate is expensive. "But during summer, demand surges," he says.
"This summer was worse than previous summers." Gas-based power stations worked round the clock to generate power to meet soaring demand under government orders.
"In the April, May, and June (2024) period, electricity generation at these 26 gas-based power plants went up 62.5% to produce 12.49bn units," confirms an energy department source. "In June 2023, the Plant Load Factor (PLF) of gas-based power plants was 17%, but in June 2024, it went up to 25.8%."
However, the June 2024 cargo arrivals might not be repeated in July 2024. "LNG prices are gradually rising," we hear.
"Don't expect the June momentum in July or August."