Falling spot prices of liquefied natural gas (LNG) makes this an opportune time for revival of stressed gas-based power assets in the country, the report said. LNG prices are currently at $5 per million metric British thermal unit (mmbtu), down from a peak of $10 per mmbtu as recently as November 2018.
“The decline has been due to increasing supply in global markets from newly commissioned projects in Australia and the US. Moreover, a few of the liquefaction capacities in US and Australia became operational in the last quarter of fiscal 2019, putting downward pressure on spot LNG prices,” the rating agency Crisil said.
The rating agency expects spot LNG prices to trend lower in 2019, averaging $5-6 per mmbtu. Beyond this year, prices could increase slightly to $6-7 per mmbtu, as the demand in winter season improves. Read More
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