IGU Calls for Gas Infrastructure Reforms to Support India's Long-term LNG Growth

The International Gas Union (IGU) has called for reforms in gas infrastructure and pricing to support India's long-term growth in liquefied natural gas (LNG) imports.

According to a report by the IGU, India's LNG regasification terminal capacity has expanded significantly over recent years, but investment in midstream infrastructure has not kept pace. This has restricted the country's ability to increase its consumption of natural gas.

The report noted that reforms to gas pricing mechanisms and improved market access would be essential to sustain future demand growth. It also highlighted the risks associated with India's dependence on geographically concentrated sources of LNG, such as Qatar, which supplies most of India's LNG needs.

India currently meets only around 50-52% of its natural gas demand through domestic production, with the remaining requirement fulfilled through LNG imports from various countries. The country's reliance on Gulf-sourced liquefied petroleum gas (LPG) and LNG has raised concerns about supply disruptions due to geopolitical tensions in West Asia.

The IGU report pointed out that any resolution of shipping disruptions through the Strait of Hormuz, combined with weaker LNG demand elsewhere in Asia, could create favourable conditions for India to accelerate its adoption of natural gas.