LNG Cost per SCM Explained: Step-by-Step Invoice Calculation with Real Plant Data
LNG Price Range in India (Practical Field View)
In India, LNG cost per scm for industrial and commercial users usually fall between ₹40 to ₹48 per SCM, depending on location, supply contracts, and market conditions. In some regions, prices may vary further due to transportation distance and local taxes.
Apart from the base LNG rate, delivered gas cost also includes truck transportation, regasification charges, and applicable taxes.
Globally, LNG is traded in energy units (MMBTU), and its price is influenced by international demand, seasonal consumption, and spot market movements, especially in Asia and Europe. Because LNG is priced by energy but consumed by volume or weight, conversion from MMBTU to SCM or kg becomes essential for real cost comparison.
Final LNG pricing also depends on factors such as:
- Gas composition (GCV value)
- Distance from regasification terminal
- Local GST and state taxes
- Long-term contracts versus spot purchases
- Global LNG demand trends
This is why engineers and sourcing teams should always calculate the actual LNG cost per SCM using invoice data instead of relying only on quoted market prices.
In LNG operations, gas is billed in MMBTU, while customers consume in SCM or kg.
This often creates confusion for engineers.
This article explains step-by-step how to calculate LNG cost per SCM directly from invoice data using a LNG truck example.
Understanding LNG Billing Units
- Mass: kg / MT
- Energy: MMBTU
- Volume: SCM
Universal Constant:
1 MMBTU = 252000 kcal. It is constant, so note it in your brain
In LNG trading, everything is based on energy. If you know the total MMBTU and the price per MMBTU, you can quickly estimate the truck value. Simply multiply total energy x price per MMBTU to get a rough LNG cost. This is the basic LNG trading logic.
But since customers consume gas in SCM or kg, engineers and sourcing team need proper conversion to understand the real gas price. Let’s break down the calculation step by step.
Step 1: Find Total Price per MMBTU
From invoice:
Step 2: Find GCV from LNG Loading Ticket
GCV is given in kcal/SCM.
This depends on methane %, ethane %, and overall gas composition. that you may see in invoice or Joint ticket
Step 3: Calculate LNG Cost per SCM
Engineer Shortcut (Field Method)
Since LNG GCV ≈ 9600:
Ultra Shortcut:
How Energy (MMBTU) is Calculated from LNG kg
From the loading ticket:
Real Truck Example
Energy Delivered: 794.13 MMBTU
Rate: ₹1083.88 / MMBTU
Useful Field Constants
| Parameter | Value |
|---|---|
| 1 MMBTU | 252000 kcal |
| Typical GCV | ~9600 kcal/SCM |
| SCM per MMBTU | ~26 |
| LNG ₹/kg | ~55 |
| LNG ₹/SCM | ~41 |
Variable Values (Read Every Invoice)
- LNG rate
- Destination charge
- Total MMBTU
- Taxes
Final Simplified Cost Equation What i Prefer Mostly
Conclusion
Understanding LNG billing is essential for engineers, the LNG sourcing team, and CGD professionals.
With just the invoice price and GCV, anyone can calculate the real gas cost per SCM in under one minute.
This method removes dependency on spreadsheets and enables fast reconciliation, margin checking, and operational clarity.
For a detailed explanation of how LNG truck quantities are measured and invoiced at the regasification terminal, read our complete guide here.