The demand for LPG in India will increase by 3.3% each year, hitting 34 million tonnes in 2030. Wood Mackenzie’s forecast is that domestic market demand will be driven by the subsidies with which the country is helping households meet the costs of the shift from biomass to gas.
If the Indian government continues to support the domestic market for the next ten years, total subsidies for the use of LPG could reach $5.7 billion per year until 2030. At this rate, in two decades India could overtake China as the world’s largest importer of Liquefied Petroleum Gas.
Indian LPG consumption is expected to increase by 2% in 2020 and a further 17% over the next five years. Meanwhile, spot freight rates for VLCG (Very Large Gas carrier) ships have increased by 4% on a weekly basis, peaking at $45,000 per day last week.
Translation by Giles Foster