India is expected to see a decline in LNG imports in the 2025 calendar year due to moderate demand and increased competition in global markets. The International Energy Agency (IEA) reported that India’s LNG imports grew by 21% in 2024, accounting for 7% of global imports. This growth was driven by demand in the city gas distribution and oil refining sectors, as well as lower domestic gas production.
However, the IEA predicts that India’s LNG import growth will slow to 10% in 2025, as demand growth moderates and competition for LNG cargoes increases internationally. The agency noted that imports in 2024 were supported by lower prices, with a significant increase in the number of LNG cargoes tendered for delivery in India.
Despite the expected decline in growth, India remains an attractive market for long-term LNG suppliers. In 2024, over 15 BCM per year of new sales agreements were signed, including a 10 BCM per year contract with Qatar renewed for 20 years starting in 2028. The country is also diversifying its LNG supply sources through new long-term contracts with portfolio players and suppliers from the US.
The global LNG market is expected to shift in 2025, with Europe increasing LNG imports due to pipeline supply risks. Europe is projected to import 21 BCM more LNG in 2025, while Asia Pacific imports are set to grow by 9 BCM. This growth will lead to increased competition for LNG cargoes, impacting emerging Asian markets and slowing import growth.
Overall, the IEA anticipates a more competitive global LNG market in 2025, with evolving dynamics and increased supply from new liquefaction projects. Despite these challenges, India’s LNG import demand is expected to remain strong, driven by the country’s growing energy needs and economic expansion.
