New Delhi, Jan 22 (IANS): India's efforts to build a gas based economy is set to get a boost from the falling spot LNG prices that had skyrocketed to over $30/mmbtu (from $2 a few months ago on the back of the winter demand and supply constraints.

According to an estimate made by Emkay Global Financial Services, Asian spot LNG prices have started cooling off now with the latest deals happening at sub-$ 10 level for March delivery.

This should consolidate at $ 5-6/mmbtu due to seasonality and resolution of supply issues, offering higher volumes for the Indian LNG players, the brokerage said in its report.

Indian spot LNG demand (20 per cent of consumption) is likely to be affected in January and February months but, thereafter supplies are expected to recover on the back of sub $ 10/mmBtu prices. This should also better avenues for entries such as GSPL, PLNG.

Indian deals (for spot LNG) have happened at the rate of up to $ 14-15/mmbtu recently. Out of 95mmscmd of Indian RLNG demand, 50-55mmscmd is long term, 10-15mmscmd is short term and remaining 30mmscmd is spot.