Rise in US LNG production to benefit India, CEO of Petronet LNG says

Petronet LNG

27/01/2025 14:24

By Sethuraman N R
       Jan 27 (Reuters) - An increase in LNG production in the
United States after President Donald Trump ended a moratorium on
new export permits should benefit consuming nations like India,
the chief executive of the country's top gas importer said on
Monday.
    Trump last week ordered the U.S. Energy Department to resume
the consideration of LNG export applications after the Biden
administration froze them.
    "If more LNG plants come in the U.S., it will stabilise 
international LNG prices," Petronet LNG Chief Executive Akshay
Kumar Singh said in a post earnings media call.
    "For a consuming nation (like India), it is expected that if
prices are in the range of $7 to $8 per million British thermal
units (mmBtu), the consumption will drastically improve because
there is no shortage of customers, they are just price
sensitive," Singh said.
    Singh expects LNG prices to hover around $12-$14 per mmBtu
in the current quarter on strong demand from Europe.
    European gas reserves are some 17 billion cubic metres (bcm)
lower than at the same time in 2024, according to ICIS analyst
Alex Froley. 
    The additional volumes required to refill them could also
keep prices elevated in the second quarter of the year, Singh
said. 
    He also said Petronet is working to start supplies of LNG to
neighbouring Sri Lanka, after signing a deal to supply LNG
engineering firm LTL Holdings' power plants in Colombo for five
years through a terminal in the southern Indian city of Kochi.

 (Reporting by Sethuraman NR; Editing by Kirsten Donovan)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))