Page 140 - CW E-Magazine (23-4-2024)

Hydrocarbons

taking the lead. China represents LNG regasifi cation capacity. Estima- domestic production. However, the
around 60 percent of the capacity under tions indicate that Indian LNG imports GECF report said that despite a robust
construction, while India is responsible could double, reaching 39-mt by 2030, government ambition for natural gas to
for roughly 20 percent of the ongoing and rise to 80-mt by 2040 and 105-mt reach 15 percent, the target is “unlikely to
development of regasifi cation infra- by 2050. be met”.
structure,” it added.
“Realising such an outcome neces- Gas production
Asia Pacifi c is projected to remain sitates substantial investment in both Natural gas production in India has
the dominant long-term LNG import supply and distribution infrastructure. been on an upward trajectory since
market. By 2050, it is anticipated that India will 2020, surging from 24-bn cubic metres
increase its regasifi cation capacity by (bcm) to 35-bcm in 2023. A signifi cant
“China is poised to be the largest 75-mtpa, reaching a total of 115-mtpa, portion of this increase is attributed to
growth market this decade, but India is which marks a signifi cant rise from the offshore production, accounting for
expected to assume that role after 2030. existing capacity of 40-mtpa,” GECF over 70 percent of the overall produc-
South and Southeast Asia are forecast said. tion growth.
to be the markets with the highest
incremental LNG import growth, albeit India is actively targeting a 15 per- “We anticipate that India is
from a lower base,” the report stated. cent increase in the share of natural gas expected to achieve a natural gas
in its energy mix by 2030. This goal production level of 50-bcm by 2050,
Expanded capacity is to be achieved through the expan- with 95 percent of this production
India’s gas demand is forecast to sion of pipeline networks, construction originating from offshore projects,”
be met via expanded gas pipeline and of LNG terminals, and support for the report said.

PETCHEM FEEDSTOCK
India second biggest importer of ethane from the

US in 2023

India was the second largest ally contributed to the record exports. ethane and other hydrocarbons and
importer of ethane from the US, af- China imported 45 percent of US development of evacuation infrastruc-
ter China, last year aided by rising ethane exports in 2023, followed by ture at Shell Energy Terminal, Hazira.
demand for petrochemicals, lower India (16 percent), Canada (14 per-
prices of the commodity in the US cent) and Norway (10 percent),” the The development indicates that
and growing tanker capacity. Ethane is US Energy Information Administra- ethane is emerging as a preferred petro-
used mainly as a feedstock in the petro- tion (EIA) said. chemical precursor in India and the
chemical industry to produce ethylene development of its import facilities
for making plastics and resins. India, which imported 2,000-bpd have gained traction.
of ethane from the US in 2016, pro-
The US, which has been exporting cured a record 83,000-bpd in 2019, In Asia and Europe, naphtha serves
ethane since 2014, witnessed its after which it fell to 73,000-bpd in as the primary petrochemical feedstock,
exports average at a record 4,71,000 2020 as the Covid pandemic riled but demand for ethylene is outpacing
barrels per day (bpd) during 2023, global markets, impacting demand. demand for other co-products, reduc-
which is a 57,000-barrel increase from In 2022, India imported 76,000-bpd ing the appeal of naphtha cracking.
the previous record set the year before. of ethane from the US, which fell Cracking ethane can yield more than 80
marginally to 74,000-bpd in 2023. percent ethylene; cracking naphtha can
“Strong ethane exports were driven yield as little as 30 percent ethylene.
by growth in global petrochemical Recently, GAIL (India), ONGC and Ethane’s growth as an ethylene feed-
sector demand and rising tanker Shell Energy India signed a tripartite stock is attributable to its low relative
capacity. Low prices for US ethane Memorandum of Understanding (MoU) cost, high ethylene yield and low number
compared with other feedstocks glob- to explore opportunities for import of of co-products.

140 Chemical Weekly April 23, 2024

Contents Index to Advertisers Index to Products Advertised