India is seeking long-term liquefied natural gas (LNG) purchase deals with Brunei,Indonesia,Australia and Malaysia as it plans to double its LNG regassificaion capacity by 2016,junior oil minister R.P.N. Singh said on Wednesday. India,Asia's third-largest oil importer,is scouting for long-term overseas deals to help cushion against global price fluctuations and to secure energy supply for a country that relies on imports for four-fifths of its oil needs. Gas accounts for about 10 percent of India's primary energy basket versus the world average of 24 percent,Singh said at the East Asia Summit Energy Ministers Meeting in Brunei,adding India's gas demand is expected to grow at 14 percent in the next five years. To popularize this versatile and environmentally benign fuel,the government is doubling its present regassified LNG capacity of 13.6 million tons per annum to 26 million tonnes by 2016,Singh said in a statement. But industry executives have warned skyrocketing prices of LNG at above $16 per million British thermal units could soon cut into demand growth and delay import infrastructure projects in India,the Philippines and other Asian countries. Singh said Indian is also building about 8,000 km of gas pipelines to transport gas across the country. India currently imports 7.5 million tonnes a year of LNG from Qatar under long-term contracts and buys spot cargoes from across the world. A rally in the liquefied natural gas market is threatening to dampen India's appetite for LNG over the next decade,an industry executive said. To meet its needs,the world's eighth-largest LNG importer is quickly expanding its terminal capacity to 47.5 million tonnes per annum by 2015-16 from 13.5 mtpa currently. But surging prices could slow demand growth and leave some of India's LNG import capacity unused. Asian spot LNG prices have surged to above $16 per million British thermal units (mmBtu) since the March 11 earthquake and tsunami in Japan,when prices stood around $10 per mmBtu.
