Soaring Natural Gas prices can boost the Methanol market in India
- 31-Jan-2022 1:38 PM
- Journalist: Jai Sen
In India, with surging demand of fuel for power generation Natural Gas is widely used. The prices of Natural Gas in India surged to its new height where the prices were observed to be $8891 per thousand MMBtu Ex-Hazira. Natural gas costs have kept on running up. The market saw 10% increases on January 27 2022, exchange and it is up 2% in the today's exchange.
Asia's oil demand is as of now on a supported uptrend pattern after an extensive stretch of uneven growth as utilization in China and India is looking progressively versatile, and OPEC+ members plan their stock response will be critical in supporting the recovery. Essar is a major producer of unconventional gas in India and is additionally a stakeholder in one of the biggest arising gas-condensate plays in offshore Vietnam. With the increase in consumption of Shale gas in production of electricity, the prices were on the higher end. The cold climate estimate in the India and the rest of the world has prompted to higher demand there, the US inventories in the meanwhile have seen the most elevated draw since February 2021. There is solid gas demand from Europe and Asia and afterward the US gas export plants additionally are running at record highs. February futures settle near 45% on the higher side and for the March the gain was observed to be of 10% and the prices trading above $4 level.
According to ChemAnalyst, the price of Natural Gas in India is expected to increase further. With low inventories and chilling winter where the demand will surge, the prices of Natural gas all over the globe will increase. Coal shortage in India and China will further boost the prices. It is observed that the global energy growth this year had increased compared to previous year where Covid had impacted the economics of the region, the demand in February will shot up and energy producers will feel pressurized to meet the growing demand, pushing up prices of Methanol in the market.