Indian deepwater gas at risk from spot LNG Report

Insight 14 July 2020

Get this report*

$1,350

You can pay by card or invoice

Share link

First name
Last name
Job Title
Company
Email
Telephone

Country

Message

Consent

Please keep me informed about Wood Mackenzie products, services and events.

Submit Category

For details on how your data is used and stored, see our Privacy Notice.

- FAQs about online orders
- Find out more about subscriptions

*Please note that this report only includes an Excel data file if this is indicated in "What's included" below

Report summary

Deepwater projects are going to drive India's gas production starting 2021. Gas from these projects, operated by Reliance and ONGC, will have to compete for market share against cheap spot LNG. While gas demand is recovering post coronavirus, spot LNG prices should stay low till 2022. We believe that these deepwater volumes are at risk of being replaced by spot LNG. However, not all deepwater gas is equal. Upstream economics, market location and buyer preferences will all dictate the amount of domestic gas which is at a higher risk of being replaced.

Executive summary
- Deepwater gas from Krishna-Godavari basin set to provide incremental domestic gas supply
- Only 15% of new deepwater gas has been contracted
- Key outcomes of the RIL/BP gas auction in November 2019
- Post-pandemic global LNG market still offers upside for spot LNG imports
- Not all deepwater gas is at equal risk
- Andhra Pradesh and Telangana – small demand centres but with clear advantage for domestic gas
- Upstream economics - Reliance can go lower, ONGC struggling to compete
- 4 more item(s)...