A scorching summer that intensified electricity demand, along with growing industrial and commercial activities, pushed India’s liquefied natural gas (LNG) imports to an all-time high in 2024. The country accounted for seven percent of global LNG imports last year, according to Shell’s latest LNG outlook.
Shell reported that India’s LNG imports surged by 20% year-on-year, reaching a record 27 million tonnes (MT) in 2024. The increased demand stemmed from higher power consumption due to extreme heat and the need for LNG in power generation, cooking, heating, and industrial applications across the country.
LNG Market Expansion in India
The International Energy Agency (IEA), in its Q1 2025 gas market report, highlighted a significant rise in LNG imports. The world’s fourth-largest LNG importer saw cargoes increase by over 6 billion cubic meters (BCM), or 21% year-on-year, in 2024. The robust demand for regasified LNG (RLNG) in the city gas distribution (CGD) and oil refining sectors, combined with softer domestic gas production, contributed to this growth.
Looking ahead, Shell projects that gas demand will continue to accelerate across Asia, with China and India leading in regasification and downstream infrastructure expansion. India is rapidly developing its natural gas infrastructure, planning to add gas connections for 30 million people over the next five years.
India’s Growing Role in the LNG Market
India remains an attractive market for long-term LNG suppliers. The IEA noted that the country signed new sales and purchase agreements totaling over 15 BCM per year in 2024. This includes a renewed 20-year contract with Qatar for 10 BCM per year, starting in 2028.
A Wood Mackenzie report expects India’s LNG imports to rise further as demand increases and domestic production declines. By 2032, the report projects that India will become the world’s third-largest LNG importer after China and Japan, with inbound cargoes making up 75% of its gas consumption. It forecasts LNG demand to exceed 37 MTPA by 2030 and reach 88 MTPA by 2050.
Expanding Global LNG Supply to Benefit India
The global LNG suppliers will significantly increase supply over the next 4-5 years. This could lower prices and encourage more Indian purchases. Shell predicts that over 170 million tons of new LNG supply will enter the market by 2030. This increase will support long-term global demand. However, the timing of these new projects remains uncertain.
The largest contributors to new LNG supply will be Qatar and the US. The US is poised to solidify its position as the world’s leading LNG exporter. By 2030, production could reach 180 MT annually, making up one-third of the global supply.
thehindubusinessline.com reports that India’s role in the global LNG market is set to grow significantly. Rising demand and expanding infrastructure in the country are driving this growth.
