LNG ? Benefits of Long-term Supply Contracts for India

India is one of the fastest growing economies in Asia wherein the demand for hydrocarbons is increasing at a rapid rate. Natural gas, being a cleaner source of energy, is been utilized heavily by sectors such as power and fertilizers in India. However, slump in the domestic production of natural gas and import through pipelines facing few political hurdles, consumers have switched towards LNG (Liquefied Natural Gas) to fulfill their demand. LNG being a costlier affair provides supply security through long-term contracts and also meets demand fluctuations through spot contracts.