Gas-fired power projects that had been idling due to high fuel prices are buzzing again, with the collapse in spot prices of liquefied natural gas (LNG).
June quarter gas consumption by power plants rose 11.7% to 104.83 million standard cubic metres per day (mmscmd) from a year ago, shows data from the Central Electricity Authority. Imports accounted for 37.4% of overall gas consumption by power plants, compared to 35% a year ago.
“If you look at the spot prices, which are ranging from $2 to $3 per mmbtu (Metric Million British Thermal Unit), a lot of consumption was going into the power sector. Going forward also, gas prices are expected to remain low. So, we are confident that all the spot volumes we procure we will be able to place it in the market,” an official from Petronet LNG, country’s top gas importer, said on the condition of anonymity. As recently as a year ago, spot price of LNG was around $5.5 per mmbtu.
