High LNG Charges Threaten Market Growth, Says Think Gas
What Happened
City gas distributor Think Gas has asked the Petroleum and Natural Gas Regulatory Board (PNGRB) to push for a 30% reduction in LNG terminal charges, arguing that current economics make third-party use of terminals unviable. The company said regasification charges of ₹73-104/MMBTU and truck loading fees of ₹81-120/MMBTU, coupled with annual escalations, are raising costs and limiting gas market growth.
Key Takeaways
Think Gas also criticized LNG terminal operators for imposing what it called unreasonably high boil-off gas charges, saying such costs artificially inflate gas prices for consumers. The company believes lower terminal fees and better infrastructure connectivity are essential for the success of the proposed Indian Gas Exchange (IGX) LNG capacity-booking platform.