More long-term LNG purchase deals, higher storage needed: Petro Secretary
India will need to ramp up liquefied natural gas (LNG) storage and firm up more long-term LNG purchase contracts to shield itself from the kind of natural gas supply crunch and price volatility seen these days, petroleum secretary Tarun Kapoor has said.
The world is facing a natural gas shortage as the supply has been slow to respond to a surging demand following the easing of Covid-related restrictions and reopening of economies. Natural gas prices are setting new records every day in several markets from China to Europe, pushing up electricity rates and slowing down industries in many places. Asia-delivered spot LNG prices have risen above $34 per mmBtu from under $2 in just one-and-a-half years.
