India set a new record in the calendar year 2024 by importing a record 27 million tonnes (mt) of liquefied natural gas (LNG), accounting for 7% of global imports. The surge in imports was driven by increased electricity demand and the expansion of industrial and commercial operations in the country.
According to Shell’s LNG outlook, India’s annual LNG imports grew by 20% year-on-year, with the country purchasing record volumes to meet the rising power demand during the hot summer months. The International Energy Agency (IEA) highlighted the significant growth in LNG cargoes imported by India, attributing it to robust demand in the city gas distribution and oil refining sectors.
Looking ahead, Shell projected that the demand for gas in Asia, particularly in China and India, is on the rise, with India planning to increase its natural gas infrastructure and add gas connections for 30 million people over the next five years. The IEA noted that India remains an attractive market for long-term LNG suppliers, with new sales and purchase agreements being signed to secure supply.
Wood Mackenzie’s report forecasted that India is likely to become the world’s third-largest LNG importer by 2032, following China and Japan, with LNG imports accounting for 75% of its gas consumption. The report also projected continued growth in LNG demand in the coming years, with imports expected to exceed 37 million tonnes per annum by 2030.
Despite the rising demand, more LNG supply is expected to come online globally in the next few years, which could soften prices and benefit Indian buyers. Shell mentioned that over 170 million tonnes of new LNG supply is set to enter the market by 2030, with significant growth expected from Qatar and the US.
In conclusion, India’s record LNG imports in 2024 underscore the country’s growing demand for natural gas and its increasing reliance on imports to meet this demand. With the continued expansion of LNG infrastructure and supply, India is poised to play a significant role in the global LNG market in the coming years.
