India's LNG imports to double by 2030: IEA

The International Energy Agency (IEA) Wednesday forecast India’s imports of liquefied natural gas (LNG) to more than double by 2030, fuelled by steady demand growth and slower-than-expected increase in local production.

LNG demand in the country will grow 11% annually between 2023 and 2030, twice the average rate of the past 10 years, IEA said in its latest report on India’s natural gas sector. It predicts LNG consumption to rise to 64 billion cubic meters (bcm) per year by 2030, while overall gas consumption will surge 60% from the 2023 levels to 103 bcm.

The city gas distribution sector is expected to drive the country's gas consumption growth. Heavy industries and refiners are also expected to aid gas demand.


Domestic gas production is forecast to grow modestly. “Overall growth will be tempered by plateauing output from the (Reliance-BP’s) KG-D6 fields and declining production from legacy assets like ONGC’s Mumbai offshore fields, leaving production in 2030 (at just under 38 bcm) only around 8% higher than 2023 levels,” IEA said.

The projected increase in LNG demand will require more LNG import capacity, the agency said.

“The gap between contracted LNG supply and projected LNG requirements is set to widen significantly after 2028, leaving India more exposed to the volatility of the spot LNG market unless additional LNG contracts are secured in the coming years,” according to IEA.