LNG terminals in India, apart from the Dahej terminal of Petronet LNG Limited (PLL), continue to suffer from subdued capacity utilisation owing to lower-than-expected growth in imported liquified natural gas (LNG) consumption. ICRA projects the utilisation of LNG terminals (ex-Dahej) to remain below 40% on an overall basis over the next three to five years, leading to muted returns on these investments.

Exhibit: India’s consumption of NG and its share in energy mix

Source: NITI Aayog, PPAC, ICRA Research