India Emerges 4Th Largest Importer Of LNG Natural Gas In FY2024

(MENAFN- KNN India) New Delhi, Jan 27 (KNN) India has emerged as the world's fourth-largest LNG importer in 2024, representing 7 per cent of global LNG imports. The country's import growth was primarily fuelled by demand from industrial and oil refining sectors, followed by residential, commercial, and transport segments.

India's natural gas import expenditure witnessed a significant increase of 19.4 per cent during the April-December period of the current fiscal year, reaching USD 11.7 billion compared to USD 9.8 billion in the corresponding period last year, according to data released by the Petroleum Planning and Analysis Cell (PPAC).

The December import bill alone rose by approximately 9 per cent year-over-year to USD 1.2 billion.

The country's liquefied natural gas (LNG) imports saw a substantial increase of 24 per cent during this period, totalling 28,586 million standard cubic meters (mmscm).

Industry analysts attribute this growth to increasing demand coupled with stabilised global natural gas prices, which had reached unprecedented levels in the previous fiscal year.

Overall natural gas consumption in India grew by 12 per cent to 55,496 mmscm, primarily driven by heightened demand from the city gas distribution, fertiliser, and power sectors.

This increase pushed the nation's dependence on imported gas to 51.5 per cent, up from 46.3 per cent in the previous fiscal period.

Domestic production showed minimal growth of 0.3 per cent during April-December, with state-owned Oil and Natural Gas Corporation (ONGC) reporting decreased production of 14,172 mmscm, down from 14,550 mmscm in the previous year.

Looking ahead, the International Energy Agency (IEA) forecasts a moderation in India's LNG imports for 2025, with growth expected to slow to 10 per cent compared to 21 per cent in 2024.

This projected slowdown is attributed to tempered demand growth and ongoing global competition for LNG supplies.

The agency anticipates an 8 per cent increase in India's natural gas demand in 2025, equivalent to an additional 6 billion cubic meters, driven by the country's expanding energy needs and robust economic growth.

The IEA notes that LNG cargo tenders for delivery in 2024 increased by 70 per cent year-over-year, supported by relatively lower prices.

The agency predicts that 2025 will bring significant changes to global LNG market dynamics as new liquefaction projects come online and European pipeline supply concerns drive increased LNG imports in that region.

(KNN Bureau)

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