India’s imports of liquefied natural gas (LNG) from the US soared to 256.05 billion cubic feet (7.25 billion cubic meters – BCM) in 2024, marking the highest level on record.
LNG Imports Surge by 55% Year-on-Year
According to the US Energy Information Administration (EIA), India’s LNG imports from the US grew by over 55% year-on-year (YoY) in 2024. Compared to 2022, imports more than doubled, highlighting India’s increasing reliance on US LNG supplies.
New LNG Agreements Strengthen Trade Relations
In 2024, India signed over 15 BCM per year of new LNG sales and purchase agreements, according to the International Energy Agency (IEA). These agreements reinforce India’s commitment to securing long-term LNG supplies from the US.
US Becomes India’s Second-Largest LNG Supplier
India previously recorded its highest LNG imports from the US in 2021, reaching 5.56 BCM. By 2023, the US surpassed the UAE to become India’s second-largest LNG supplier, behind Qatar. That same year, the US became the world’s largest LNG exporter, accounting for 21% of global market share, followed by Australia and Qatar.
Future Growth in US Energy Exports to India
A senior government official confirmed that oil and gas imports from the US will continue to grow. However, LNG imports have greater expansion potential, as India primarily imports light sweet crude oil (WTI) from the US, which yields more petrol.
Logistics and Cost Considerations
Freight and crude transportation costs remain key factors in India’s energy import strategy. Middle Eastern crude freight costs around $1.50 per barrel, which is one-third of US transportation costs. As reported by diligentia.net.in, despite the cost difference, India’s LNG trade with the US continues to expand, driven by rising demand and long-term agreements.
