'LPG from US must be economically viable'

AS Indian oil marketing companies secured a one-year deal to import around 2.2 MTPA of LPG from the US, industry analysts believe that India must have secured a good deal that is economically viable for Indian OMCs.

- RAKESH KUMAR @New Delhi

They said that given the high natural gas liquids (NGL) production in the US, there’s scope for competitive pricing.

“The freight cost will be obviously higher compared to West Asia because the US is several times farther. But US prices could be lower simply because it is one of the largest producers of NGLs — produced along with shale gas. The US has become a major supplier of ethane because of the sheer volume of shale gas production,” said Prashant Vasisht, senior vice president and co-group head, corporate ratings, ICRA Ltd.