India Shifts Focus from Expanding LNG Terminals to Pipeline Investment

India's ambition to increase natural gas use will focus on addressing infrastructure and market bottlenecks rather than expanding LNG terminals, according to the International Gas Union (IGU). The union emphasized the need for pipeline investment, pricing reforms, and supply diversification for sustainable growth.

The IGU stated that India has significantly expanded its LNG regasification capacity but failed to invest in the pipeline network at a comparable pace. This has resulted in underutilized terminals and limited gas consumption in regions with sparse connectivity.

The recent disruption around the Strait of Hormuz exposed India's dependence on imported LNG and liquefied petroleum gas (LPG). The IGU noted that domestic production meets only half of India's natural gas requirement, while imports account for 60% of LPG consumption.