LNG Imports Crucial for India's Long-Term Gas Growth

India's long-term natural gas growth depends on expanding liquefied natural gas (LNG) import capacity, as well as accelerating investment in transmission and distribution infrastructure. This is according to a new report by the International Gas Union (IGU). The report highlights that India has made significant progress in expanding its LNG regasification terminal capacity but has failed to keep pace with investment in midstream infrastructure.

The recent Strait of Hormuz crisis has exposed India's vulnerability to disruptions in energy supply chains, particularly due to its reliance on LNG and liquefied petroleum gas (LPG) imports from the Gulf region. Qatar remains India's primary LNG supplier, while a substantial share of LPG imports originates from the same region.

India's dependence on imported gas is significant, with domestic production meeting only around 50-52% of total natural gas demand. The remaining requirement is met through LNG imports from countries including Qatar, Australia, the United States, and Russia. India's dependence on LPG imports is even higher, with around 60-65% of domestic demand being met through overseas purchases.