India’s Local LNG Demand Is Increasing: Petronet

India's gas consumption is rising as global prices have eased, the chief executive of the country's top gas importer said on Monday.

Petronet LNG operates the country's biggest liquefied natural gas (LNG) import terminal at Dahej in western India. The terminal has a capacity to import 17.5 million metric tonnes per year (tpy) of LNG.

"We get an indication from utilisation rate (of gas import terminals)," said Petronet chief executive officer AK Singh.

He said the Dahej terminal is operating at 95 per cent capacity compared to 85 per cent a year before.

Eased gas prices, triggered by the build-up of stocks by European nations, are boosting gas consumption in the price-sensitive Indian market.

Singh said he hoped gas prices would remain stable this year if the European winter is "not too harsh."

He said prices of the spot and long-term LNG are almost similar at USD 11-12 per million British thermal units (mmBtu).

"When prices come to USD 11-12 (per mmBtu) then it is competing with alternative fuels," he said.