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

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


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