With nations resorting to use cleaner fuel arising from concerns of unpredictable global weather changes, demand for liquefied natural gas ( LNG ) will continue to soar in 2012 and possibly in the coming years. However, the said growth may not run in parallel with LNG prices.
"The demand for gas is growing as per projections and expectations. The growth would continue in the same way and that remains the main driver is the volumes," A Balyan, CEO and Managing Director of Petronet LNG, said in www.moneycontrol.com.
The prices, however, do not reflect the right over capacity situation in the world, Balyan pointed out.
"The (global) LNG capacity is much more than the consumption or demand," he said.
Balyan noted that in the west coast of India, LNG is priced around $14 a million MMBtu. Three to four months ago, it was between $16 to $17.
"So, I see a small softening of the spot cargos," Balyan said.
The company enjoyed a robust 35 per cent growth in the last quarter, but Balyan stressed the production volumes will be maintained at second quarter levels.
The company also announced it looks forward to its operations expansions at Hague where the bidding procedure is expected to begin between March to April next year. The Hague expansion expects to increase capacity from existing 10 million tonnes to 15 million tonnes by 2013.
"The main driver for the company until now has been high LNG volumes...the demand is very good in the country. More and more projects are (becoming) gas-based. There are certain policy frame work changes we are expecting in the fertilizer and power sector. Refinery sector is one of the biggest now in the country and a refining hub consumes lot of gas. So, the growth to my mind is pretty good," Balyan said.