Indias Liquefied Natural Gas Imports Increase by 8% in 2023

Against the backdrop of the continuous change in the global energy demand structure and the increasing awareness of environmental protection, natural gas, as a relatively clean fossil fuel, has seen a continuous increase in its proportion in global energy consumption. As the second - most populous country in the world, India has a huge energy demand, especially in the pursuit of the dual goals of economic growth and environmental sustainability, the import of liquefied natural gas (LNG) is particularly important. According to 2023 data, the total amount of LNG imported by India reached 22.2 million tons, an 8% increase compared with the previous year. Although this figure is still lower than the 24.4 million tons in 2021, this growth trend reflects Indias active efforts in energy diversification and ensuring energy security.

India has a particularly close energy cooperation relationship with the Middle East region, especially Qatar. Qatar provides about 50% of Indias LNG supply, with a total volume of 10.9 million tons. In addition, the United States and the United Arab Emirates are also important LNG suppliers to India. Each of the two countries sold 3 million tons of LNG to India, accounting for 14% of Indias total LNG imports. This diversified supply pattern not only helps India reduce the geopolitical risks of energy supply but also enables India to obtain more competitive prices in the global LNG market.

However, it is worth noting that LNG supply from Russia was particularly scarce in 2023. India only purchased a batch of LNG from the Yamal SPG plant of Novatek Group that year, which to some extent reflects the volatility of the global energy market and the impact of geopolitical factors on energy trade. Nevertheless, India is still actively seeking energy cooperation with different countries to ensure that its growing energy demand is met.

According to the forecast of the International Energy Agency (IEA), Indias natural gas consumption will increase by 6% in 2024. This growth is mainly driven by the domestic demand growth in the industrial sector, including power generation and fertilizer production. The increase in the proportion of natural gas in Indias energy structure not only helps meet the growing domestic energy demand but is also a key step for India to achieve energy transformation and reduce carbon emissions. To address this challenge, the Indian government and energy companies are stepping up investment in natural gas infrastructure, including LNG receiving terminals, storage facilities, and pipeline networks.

Indias move to increase LNG imports is an important part of its energy strategy diversification and ensuring energy security. By strengthening cooperation with major global LNG producers, India can not only ensure the energy supply required for its economic development but also provide support for it to play a more active role in global energy governance. With the continuous evolution of the global energy market and the application of new technologies, Indias strategic layout in the energy field will continue to affect its economic development trajectory as well as its position and role in global energy security and climate change issues.