According to Facts Global Energy, the preeminent global oil and gas/LNG consultancy organization; the recent focus and increased demand of cooking fuel in India, opportunities may open up the scope of imports from US suppliers.
Arun Jaitley, the union finance minister said in the budget speech on last Thursday that the government intends to provide free cooking gas connections to 80 million families, who are living under the below poverty line.
Ong Han Wee, the Singapore-based head of the LPG team at Facts Global expressed the view that there will be LPG supplies from the US and said, “Aside from Iran, the supply growth will remain flat in the Middle East. India import requirements may eventually be greater than what Middle East can supply.”
The consultancy organization had made an estimate that the demand of LPG in India will grow, to the tune of million tonnes in the year 2018. Last year, the consumption expanded nearly 23 million tonnes, with a growth rate of 8% per year, which opened up the import requirements.